The Top Warehouse Management and 3PL Trends to Watch in 2023

The logistics industry is constantly evolving, and as we move into 2023, it’s essential for third-party logistics (3PL) providers to stay informed about the latest trends that will impact their businesses. This article explores the key trends shaping the future of 3PL warehouse management and the logistics industry as a whole. Without further ado, let’s dive right into our list of 3PL trends to be aware of (in no particular order):

Growth of eCommerce, Adapting Fulfillment Strategies, and Expansion of FaaS Offerings

The growth of eCommerce shows no signs of slowing down, with total retail sales expected to continue rising in 2023. To stay competitive and meet the needs of their customers, 3PLs must adapt to this trend by expanding their fulfillment center networks, upgrading warehouse space, and implementing new technologies like automation and robotics. Ensuring efficient management of inventory and order fulfillment across multiple sales channels, including online marketplaces like Amazon and other alternative sales platforms, is crucial.

Fulfillment-as-a-Service (FaaS) will continue to gain traction in the logistics industry, as more businesses look for flexible, scalable, and cost-effective solutions to meet their growing order fulfillment needs. By offering comprehensive FaaS solutions and refining order picking and packing processes, 3PLs can improve their operational efficiency and cater to the ever-growing demands of the eCommerce landscape.

Addressing Labor Shortages with Training and Automation

Labor shortages have been a persistent challenge for the logistics industry, and in 2023, 3PLs will need to address this issue through a combination of training, automation, and workforce planning strategies. By investing in employee training programs and upskilling their workforce, logistics companies can retain talent and ensure they have the necessary skills to meet the demands of the industry.

At the same time, embracing automation technologies can help alleviate labor shortages by reducing the reliance on manual labor for tasks such as data entry, inventory management, and order fulfillment.

Embracing Automation, Reducing Manual Data Entry, and Leveraging Predictive Analytics

The adoption of automation and new technologies will continue to be a game-changer for the logistics industry in 2023. From warehouse automation systems to autonomous vehicles and IoT devices, these technological advances will enable 3PLs to optimize their operations, reduce labor costs, and stay competitive in the marketplace.

By reducing manual data entry and automating processes, logistics companies can save time and resources. Incorporating predictive analytics allows 3PLs to analyze historical data, make better-informed decisions, and improve warehouse space utilization, leading to more efficient business processes.

Last Mile Delivery Innovations

Last-mile delivery continues to be a critical aspect of the logistics industry, with customers demanding faster and more flexible delivery options. In 2023, we can expect to see further innovations in this area, such as the wider adoption of autonomous vehicles, drones, and electric vehicles to reduce delivery times, carbon footprint, and operating costs.

Greener Supply Chains and Sustainable Practices

As businesses and consumers become more environmentally conscious, greener supply chains will be a key focus for the logistics industry in 2023. Logistics companies will need to adopt sustainable practices, like using renewable energy sources, optimizing transportation management to reduce transportation costs, and minimizing waste in their operations.

Focus on Customer Experience and Personalization

With increased competition in the logistics industry, 3PLs must focus on delivering exceptional customer experiences to differentiate themselves from other providers. In 2023, we will see more logistics companies leveraging technology and data to personalize their services, streamline delivery management, and exceed customer expectations.

Related: Top Challenges Facing 3PL Warehousing Providers and How to Overcome Them

Real-time Visibility, Transparency, and Increased Collaboration in Supply Chain Management

Real-time visibility and transparency will be essential for logistics operations in 2023, as businesses and customers demand more control over their supply chains. Logistics providers will need to invest in advanced tracking systems, IoT devices, and data collection technologies to provide accurate, real-time information about shipments, inventory levels, and delivery status. This increased visibility will not only improve customer satisfaction but also enable 3PLs to optimize their operations and make more informed decisions.

Effective supply chain management relies on seamless collaboration and integration between logistics providers, shipping companies, and other stakeholders in the supply chain. In 2023, 3PLs will increasingly embrace digital platforms and technologies that facilitate real-time communication, data sharing, and process automation across the supply chain ecosystem.

conveyor belt with moving containers

Customized Solutions and Niche Market Specialization

As the logistics industry continues to evolve, there will be an increasing demand for customized solutions tailored to the unique needs of different businesses and industries. In 2023, we can expect more 3PLs to specialize in niche markets, such as medical supplies, perishable goods, and reverse logistics, in order to provide highly targeted services and expertise that cater to specific customer requirements.

The Growth of Other Online Marketplaces

With the rapid growth of eCommerce, other online marketplaces beyond the giants like Amazon and eBay are emerging to cater to niche markets and specialized products. These marketplaces present new opportunities for 3PLs to expand their services, reach new customers, and diversify their revenue streams. For example, a recent study showed that working with smaller, specialized marketplaces could lead to increased demand and high margins for 3PLs as they can offer tailored solutions to these businesses.

Amazon Sellers and the Role of 3PLs

As more businesses tap into the lucrative market of selling on Amazon, there’s an increased demand for third-party logistics providers who can manage their inventory, storage, and order fulfillment. By offering specialized services tailored to Amazon sellers, 3PLs can create more business opportunities and help these sellers optimize their operations, reduce costs, and improve customer satisfaction.

Revenue Growth Through More Opportunities

To capitalize on logistics industry trends, 3PLs must continuously explore more opportunities and expand their service offerings. This can include entering new markets, partnering with emerging online marketplaces, and incorporating the latest technologies into their operations. By staying ahead of the curve and adapting to the ever-changing landscape, logistics companies can ensure revenue growth and maintain a competitive edge in the industry.

Related: 3PL Best Practices: Tips for Third-Party Logistics Providers

Logimax: A Game-Changer for 3PL and Logistics Companies

At Logimax, we provide a cutting-edge warehouse management software solution designed to streamline and optimize your logistics company’s operations. Our comprehensive system offers advanced features that cater to the needs of 3PL providers, allowing you to improve efficiency, reduce costs, and enhance customer satisfaction.

By leveraging the power of Logimax, your logistics company can automate warehouse processes, minimize manual tasks, and effectively manage inventory levels. Furthermore, our system offers real-time visibility into warehouse operations, providing valuable insights that enable you to make data-driven decisions and enhance overall performance.

As the logistics industry continues to evolve and adapt to emerging trends, solutions like Logimax play a vital role in empowering logistics companies like yours to stay competitive and capitalize on new opportunities in the market. The adoption of such advanced software systems will be a critical factor in driving success for logistics companies in 2023 and beyond.


As the logistics industry continues to evolve, 3PLs must stay up-to-date with the latest 3PL trends and adapt their strategies accordingly. By embracing innovations in last-mile delivery, leveraging data analytics and predictive capabilities, adopting greener supply chain practices, and focusing on customer experience, they can stay competitive and drive growth in the rapidly changing landscape of 2023. Additionally, by addressing labor shortages, investing in automation, and presenting customized solutions, 3PLs can better meet the needs of their customers and navigate the challenges and opportunities that lie ahead.

To optimize your logistics operations, consider implementing a warehouse management solution like Logimax – a game-changer for logistics companies in 2023 and beyond. Contact us today to learn more about our innovative solutions and how they can help your business succeed in the competitive logistics industry.

3PL WMS Software: Annual Performance Review Checklist

Conducting annual performance reviews is part of doing business. If you manage or own any kind of business, you know that annual reviews must be done in order to evaluate an employee’s work performance and how it impacts the company’s goals and objectives.

Employees are not the only thing that can impact your day-to-day operations and should undergo an annual assessment, however. If you’re a third-party logistics company manager or owner, evaluating the performance of your warehouse management system (WMS) software needs to happen yearly as well. Whether you operate a small business or run multiple warehouses, your 3PL software can make all the difference in how efficient and productive your logistics business runs.

An annual review of your 3PL software helps to ensure you’re getting maximum utility from it as well as allowing you to identify areas where additional investment might improve inventory control, order fulfillment, and overall supply chain operations. To make sure nothing is overlooked, we’ve created an in-depth checklist that covers everything from database performance and shipment accuracy to workflows and reporting tools. Keep reading for specifics on what should be covered during your annual third-party logistics software review.

Here are some key items you should check in order to assess your 3PL software’s annual performance:

Does Your 3PL WMS Software Integrate Properly?

Cubes connected together

Third-party logistics warehouse management system software is essential for many businesses to effectively manage their warehouses. A thorough check should always be conducted to ensure that your 3PL software is fully integrated with all of the necessary applications and operating error-free. Examples of integrated systems to review include ERP, accounting, EDI, shipping, human resources, climate control monitoring, and third-party applications.

Having a 3PL WMS that can manage inventory and is connected with all of these other critical components will prove invaluable in allowing visibility into every area of your warehouse’s complex operations, not just order management. Not only can your 3PL WMS software simplify daily procedures, but also keeps operations cost-effective while offering improved accuracy and reliability. Integrating 3PL warehouse management software into a company’s business operations can be a major stepping stone toward scale effectiveness as your business grows within the supply chain management and logistics industry.

Do Team Members Use the WMS 3PL Software as Intended?

two people reviewing WMS software on the computer

Are your employees completing all of the necessary fields and using proper codes in the warehouse management system? Is the inventory management system software hard for them to comprehend? What good is your software if it isn’t being used properly? Ensuring your third-party logistics software solution features an easy-to-use user interface is critical for all team members in the organization, from managers to employees.

To optimally use the features available and save time and money, training for all workers is essential for getting the most value-added services from your WMS software and supplier. Some third-party logistics companies do not put enough emphasis on training, which is a huge mistake that could cost them multiple clients in the end and encourage a client to seek out other third-party logistics providers in the end.

It is important to train all new employees on common features of the 3PL software when hired and offer training support on-premises from seasoned employees. When new 3PL WMS key features are added, provide workers with updated training as well. Don’t forget to offer refresher courses throughout the year too. Having a WMS supplier who offers free or low-cost on-site or online training is a great way to ensure everyone understands how to use it and connected mobile devices and equipment resources properly. Doing so will prevent any costly mistakes while ensuring the timely shipment of customer orders.

Lastly, it’s important to walk new clients through your 3PL software customer portal so they can look up available inventory and order data in real-time.

Is the WMS Inventory Management Information Accurate?

scanning a box in a warehouse

There is no point in having one or even several third-party logistics warehouse management systems if the information within is inaccurate. That’s why it is imperative that you evaluate your 3PL WMS software at least annually.

Are orders from EDI transactions pulling inventory from the correct stock sequence? Does each 3PL warehouse location communicate accurate information in real-time? When you initially selected your third-party logistics software, you were relying on having real-time visibility into your inventory levels and movements, which is essential in your supply chain process. An annual evaluation can bring any 3PL software system problems to the forefront if they haven’t been already.

Your 3PL warehouse management software helps your company effectively manage orders, shipping, receiving, and fulfillment processes across multiple locations. With access to real-time visibility into inventory levels and stock movements at multiple warehouses, locations within your supply chain network are able to communicate with each other while keeping up-to-date information on available inventories.

Safety is also a priority when packing and shipping orders; third-party warehouse solutions must properly identify hazardous materials, cold storage SKUs, and their associated destinations.  Competent 3PL software can help ensure these items are managed properly.

Does Your Third-Party Logistics Software Improve Efficiency?

order pick time evaluation

3PL WMS software offers vast improvements in efficiency for warehouse management systems and overall operations. By utilizing 3PL software, processes such as order picking, packing, shipping, and receiving can be streamlined, saving time and money while increasing productivity. The inventory tracking process is also made easier with the help of this type of 3PL warehouse management system software since one of its many benefits is the ability to reduce errors, fulfill orders, and quickly collect and share data from each part of the supply chain.

Companies that use 3PL WMS software often experience faster average delivery times and fewer errors in comparison to those that don’t leverage third-party logistics technology. Therefore, supply chain 3PL software is a valuable resource for improved efficiency within warehouse operations.

Has Your WMS Software Increased Customer Satisfaction Ratings?

Work meeting with multiple employees

For any third-party logistics facility aiming to increase client satisfaction, reviewing and evaluating the capabilities of their warehouse management software is very important. In order to truly maximize customer contentment, it is important that clients have access to all necessary information they need on order status, shipping dates, and inventory availability from an easy-to-use cloud-based portal.

Additionally, ensuring that your customer service representatives (CSRs) have the resources and organization needed in order to quickly answer questions and fulfill support tickets helps ensure happy customers! Investing time and effort in 3PL WMS features can be a crucial step in increasing the satisfaction of your customers and service ratings.

Are the 3PL WMS Reporting Features Satisfactory and Working Properly?

reviewing financial reports

It’s essential to ask yourself if your third-party logistics WMS reporting features are satisfactory and working properly. It boils down to assessing the software’s ability to generate accurate reports that provide insight into shipping performance metrics like order accuracy rate and inventory levels. The reporting function is crucial if you want to reach your third-party logistics goals. It offers the perfect way to provide your customers with data on order fulfillment for different companies, shipping costs, billing, and more.

Make sure you have the option of generating proper reports to meet governing compliance regulations, plus run customized ones when you need them without extra programming from your WMS software provider. Ultimately, it’s paramount that the specific features of your 3PL WMS reporting options offer an easy way for you to gather information about your operations for more efficient decision-making.

Are You Receiving Updates for Your 3PL Software?

Having 3PL software in place is a great way to manage your warehouse processes and gain efficiencies. One of the biggest benefits is having access to the latest software updates from your WMS provider. Updates typically come through at least once a year, and each one can offer new features and application enhancements to make sure your operations are running smoothly.

If you’re not receiving any updates from your WMS provider, that’s usually a red flag. As quickly as the supply chain changes, an out-of-date application could cripple your 3PL’s fulfillment process and hurt your business. In addition, if support sent you a software update but you have yet to initiate the installation process, it means that you’re missing out on potential upgrades and program fixes, which could lead to hiccups down the road. In other words, proactive updates are key for keeping everything running optimally!

Do You Need More Third-Party Logistics WMS Features?

keyboard with various business and sales icons above it

You already know how third-party logistics and warehouse management systems software can play important roles in streamlining your warehousing operations. But if you’re still struggling with efficiency, it may be time to assess whether the current software features you’re using meet your needs.

Adding new features or plugins to your current 3PL software can help automate processes that you currently do manually. Some examples include annual inventory cycle counts, customer billing, labor tracking, and customer returns. Implementing new software modules can drastically improve your workflow. Even small changes to your third-party logistics software can result in major gains for business owners looking to increase efficiency without adding significant labor costs.

Has Your 3PL Software Provided a Good ROI?

raising revenue, up arrow with dollar signs

When assessing the performance of your third-party logistics WMS software, it’s important to remember that you’re investing in a tool for improving your ROI. Evaluating the return on investment should be an integral part of any 3PL warehouse management software review.

You’ll want to look at whether or not you’re able to maintain a balance between the costs of operation and the value you’re getting from specific features such as inventory visibility, improved order fulfillment cycles, more accurate data entry and reporting, labor optimization, and automated processes. If your 3PL software isn’t delivering on ROI, it might be time to consider a different WMS system that offers better performance and cost savings.

By taking the time to review your 3PL WMS Software annually, it helps ensure that it is meeting the needs of your business now and in the future or whether you need to consider looking for a new WMS provider.

If your 3PL needs assistance reviewing your current WMS software’s effectiveness, contact Logimax for a professional consultation and more information on our innovative warehouse management solutions.

3PL Warehouse with workers and forklifts

Top Challenges Facing 3PL Warehousing Providers and How to Overcome

Third-party logistics (3PL) warehousing providers are constantly facing new challenges. From the growth of eCommerce and the need for faster delivery times to the rise of omnichannel retail, 3PLs must continually adapt their operations to stay competitive. Here we will discuss some of the biggest challenges 3PLs are currently facing and how you can overcome them.

Understanding Third-Party Logistics Operations

The 3PL industry is highly complex and is constantly evolving in this modern economy. 3PLs provide a variety of services, from transportation and distribution to inventory management and storage. As such, 3PL warehouse providers must have an in-depth understanding of their operations as well as industry trends in order to succeed. 3PL warehouse managers should be intimately familiar with the different elements of their business, from freight forwarding and customs clearance to shipping and warehousing.

They also need to stay up-to-date on the latest technological innovations and industry regulations in order to remain competitive. It’s a challenging task, but this understanding will enable 3PLs to identify areas of improvement, as well as potential opportunities for growth.

Top Ten Challenges Facing 3PL Warehousing Providers

There are a variety of challenges 3PL warehousing providers must overcome in order to remain competitive. Here, we will discuss several challenges that are among the most common and pressing issues 3PLs must address:

1. Meeting Customer Expectations

As customers become more demanding, 3PLs must meet consumer expectations for faster delivery times, better service, and lower costs. 3PLs can meet this major challenge by continually improving their supply chain operations and investing in the right technology. Investing in the right WMS software is a great way for 3PLs to streamline their operations and improve the customer experience.

2. Growing Omnichannel Retail

Omnichannel retail is here to stay, and third-party logistics companies must be prepared for the challenges it presents. 3PL warehouses need to have a thorough understanding of omnichannel operations in order to maximize efficiency and profitability. 3PL warehouse managers should regularly assess their current processes and adjust accordingly.

3. Real-Time Visibility

Real-time visibility is a must for 3PLs. Customers expect to be able to track their shipments in real-time and 3PLs must be able to provide this level of service. 3PL warehouses should invest in the right technology, such as best-of-breed WMS software, to ensure that they can offer customers the visibility they need.

4. Managing Inventory

3PLs must be able to accurately track inventory in order to ensure customer satisfaction and reduce losses. 3PL warehouses should invest in technology such as radio frequency identification (RFID) and barcode scanning software in order to improve inventory accuracy and visibility. Additionally, warehouse capacity must be sufficient to ensure they have adequate storage space for inventory.

5. Adapting to eCommerce

eCommerce is growing rapidly, and 3PLs must be prepared for the challenges that come with it. 3PL warehouses need to have a thorough understanding of eCommerce operations and invest in technology such as automated order processing and tracking systems. This will help ensure all the shipments for online shoppers are processed and shipped quickly and accurately.

6. Offering Value-Added Services

Third-party logistics providers can gain a competitive advantage by offering value-added services that extend beyond their core competencies such as labeling, kitting, and assembly. 3PLs should assess their current capabilities and invest in the right technology to offer these services efficiently and cost-effectively.

7. Gain Deeper Insights into Operations

3PLs must have a complete view of their operations in order to make informed decisions and optimize performance. 3PL warehouses should invest in the right technology, such as business intelligence software, to gain deeper insights into their operations. WMS software offers 3PL warehouse operators the ability to monitor KPIs and analyze data in real-time, enabling 3PLs to better manage their operations and make more informed decisions.

8. Ensuring Compliance

3PL warehouses must ensure they are in compliance with local, state, and federal regulations. 3PLs should regularly review their policies and procedures to ensure they meet all applicable requirements. Add in the interconnectedness of the global economy and it’s not uncommon for the largest of providers to offer their services worldwide. This presents 3PLs with the challenge of staying up to date on a wide variety of ever-changing international regulations.

9. Safety and Security

3PL warehouses must be vigilant about safety and security in order to protect their employees, customers, and inventory. 3PLs should invest in the appropriate protocols and technology to ensure a safe environment and protect their assets.

10. Improving Collaboration

3PLs must have the right tools and processes in place to facilitate collaboration with partners, customers, and suppliers. 3PL warehouses should invest in technology such as electronic data interchange (EDI) systems to ensure efficient communication and data exchange.

reviewing warehouse reporting by warehouse racks

How Technology Helps Third-Party Logistics Providers

Technology is an invaluable tool for 3PL warehouses. Investing in the right technology solutions can improve efficiency, reduce costs, and help 3PLs stay competitive. Logimax WMS software is designed specifically for 3PLs to help you optimize your operations and gain a competitive edge. From order processing and inventory management to shipping and tracking, Logimax WMS helps 3PLs streamline operations, improve customer service, and maximize profitability.

Aside from warehouse management software, 3PLs must invest in the right hardware, such as barcode scanning devices, RFID readers, and possibly automated storage and retrieval systems (AS/RS) to optimize efficiency and improve accuracy.

3PL warehouses may also invest in other digital solutions such as eCommerce integrations, EDI systems, and business intelligence software to gain better visibility into their operations and make more informed decisions.

Hiring the Right Team

Aside from investing in technology, 3PLs should also focus on hiring and training qualified workers. 3PL warehouse managers should ensure their staff is well-versed in 3PL operations and have a thorough understanding of current trends. But it’s not just hiring new talent, 3PLs must also invest in ongoing training and development to ensure their personnel have the necessary skills to perform at a high level.

Process Improvement

Finally, 3PLs should focus on improving their operational processes. 3PL warehouse managers should regularly assess their current procedures and identify areas of improvement. 3PLs can benefit from automation and optimization techniques to reduce costs and improve efficiency.

With the right technology, personnel, and processes in place, 3PL warehouses can position themselves to overcome any challenge they face.

How Clients Benefit By Outsourcing Logistics Services to Your 3PL Business

Outsourcing 3PL services to a 3PL warehousing provider provides clients with many advantages, such as:

  •  Professional and reliable service: 3PLs have the expertise to manage logistics operations efficiently and reliably.
  •  Increased efficiency: 3PLs can streamline processes, reduce costs, and improve accuracy.
  •  Access to specialized services: 3PLs can offer value-added services such as labeling, kitting, and assembly.
  •  Improved customer service: 3PLs provide clients with timely updates on shipments and accurate delivery times.
  •  Reduced overhead costs: 3PLs can help clients reduce the overhead costs associated with logistics operations.

Logimax WMS Software for 3PL Warehousing Providers

In today’s competitive 3PL warehousing industry, 3PL businesses must invest in the right technology to remain competitive. Logimax WMS is an integrated warehouse management system designed specifically for third-party logistics providers. Our software helps 3PLs increase efficiency, reduce costs, and improve customer service. We offer an in-depth suite of features to manage 3PL operations from end-to-end, including:

  • order processing and tracking
  • inventory control and optimization
  • data analysis
  • 3PL billing systems
  • and much more.

With Logimax 3PL warehousing software, 3PL companies can improve their operations and gain a competitive edge.


The 3PL warehousing industry is constantly evolving and 3PLs must be prepared to face the challenges of a changing landscape. To overcome these challenges and succeed, 3PL warehouses should invest in the right technology, personnel, and processes.

Are you looking for a 3PL WMS to increase efficiency and reduce costs in your business? Logimax WMS is the perfect solution for 3PL warehousing providers. To learn more about how Logimax WMS can help your 3PL warehouse succeed, contact us today for a free consultation.

warehouse inventory management - moving boxes

How to Improve Warehouse Inventory Management: Tips and Best Practices

If you’re running a warehouse, then inventory management is sure to be one of your top priorities. After all, if you can’t keep track of what you have and where it’s located, then you can’t efficiently manage your stock. Fortunately, there are a number of ways to improve your inventory management process.

In this guide, we’ll explore some of the best practices and tips for managing warehouse inventory effectively. We’ll also introduce Logimax WMS, a warehouse and inventory management software that can automate and streamline many of the tasks involved in warehouse inventory management.

What is Warehouse Inventory Management and What Are its Benefits?

Warehouse inventory management is the process of organizing and tracking inventory levels, order fulfillment, and stock locations in a warehouse. By streamlining these operations, businesses can improve their overall efficiency and better utilize their warehouse space. In turn, this can lead to cost savings and improved customer satisfaction.

Some of the specific benefits that can be gained from implementing a system to manage inventory include reduced labor costs, shorter lead times, and lower inventory levels.

Additionally, a well-run warehouse can provide a competitive advantage by allowing businesses to respond quickly to changes in customer demand. As such, warehouse inventory management is an essential part of any business that relies on maintaining an inventory of goods.

What is a Warehouse Inventory Management System?

A warehouse inventory management system is a software application that helps businesses do the things mentioned above – track and manage their inventory levels, stock locations, and order fulfillment. These systems can also generate reports that provide insights into warehouse operations and help businesses improve their overall efficiency.

There are a variety of different systems for managing inventory on the market, each with its own unique features and pricing. Some software systems are focused strictly on managing inventory, while others are designed to manage the entire warehouse operation.

Inventory Management System (IMS) vs. Warehouse Management System (WMS)

An inventory management system (IMS) is a software application specifically built to help businesses track and manage their inventory levels. Whereas, a warehouse management system (WMS) is a software application that helps businesses track and manage a wide range of warehouse operations, including receiving, order fulfillment, reporting, and much more.

While inventory management systems can be helpful for managing inventory levels, warehouse management systems offer a more comprehensive solution for warehouse management. As such, a WMS is typically a better choice for businesses that rely heavily on their warehouse operations.

Logimax WMS offers all of the features and functionality of a warehouse management system, as well as a number of features specifically designed for managing inventory.

checking warehouse reporting on tablet

Best Practices for Warehouse Inventory Management: The Basics

There are a few basic best practices that every warehouse should follow in order to improve inventory management. Here are some of the most important:

1. Invest in Warehouse Management Software

Warehouse management software, like Logimax WMS, can automate many of the tasks involved in warehouse inventory management, from tracking stock levels to placing orders. This software can also generate reports that will help you optimize your inventory levels and improve your overall warehouse efficiency.

2. Keep Track of Your Stock Levels

After implementing a warehouse management system, the next step to effective inventory management is knowing what you have in stock and where it’s located.

One option is to use an inventory management software like Logimax WMS. Our software can help you track your stock levels in real-time, so you always know what you have on hand. For best results, use our system together with barcodes and RFID tags to keep track of your inventory.

3. Use FIFO Inventory Management

When it comes to managing your warehouse inventory, it’s essential to use a system that will help you keep track of your stock levels and ensure that you’re using your space efficiently. The FIFO (first in, first out) method is one of the most popular and effective inventory management systems.

With the FIFO system, you’ll always ship or sell the oldest items in your inventory first. This ensures that your products are always fresh and reduces the risk of them expiring before they’re sold.

4. Conduct Regular Inventory Counts

It’s important to conduct regular inventory counts to ensure that your stock levels are accurate. This can be a time-consuming task, but it’s essential to maintaining effective control over your inventory.

Inventory counts can be conducted manually or with the help of an inventory management software like Logimax WMS. If you choose to conduct manual inventory counts, be sure to schedule them at regular intervals and plan for them in advance.

Additionally, cycle counting is a method of inventory management that involves counting a subset of your inventory regularly, instead of counting everything at once. This can help to reduce the time and effort required to conduct a full inventory count.

5. Set Clear Processes and Procedures

In order to effectively manage your warehouse inventory, it’s important to have well-defined processes and procedures in place. These should be designed to help you track your inventory levels, keep your stock organized, and minimize the risk of errors.

Some of the key processes and procedures that you should put in place include:

  • Creating a system for receiving and storing new inventory.
  • Tracking inventory levels and reordering stock when necessary.
  • Organizing your inventory so that it’s easy to find items when needed.
  • Conducting regular inventory counts.

6. Regularly Review Your Inventory

It’s important to regularly review inventory management systems to ensure they are optimized. This will help you to identify any areas where improvements can be made.

Doing a review also allows you to adapt to changes in your business, such as an increase in the number of products you’re stocking or a change in your storage capacity.

7. Invest in Ongoing Training for Your Staff

In order to effectively manage your warehouse inventory, it’s important that your staff are properly trained. They should understand how your inventory system works and be familiar with the procedures that need to be followed.

Investing in ongoing training will help to ensure that they’re able to carry out their tasks efficiently and effectively. It will also help to reduce the risk of errors being made.

8. Implement Safety Measures

It’s important to implement safety measures to prevent accidents as well as to protect your inventory from damage or theft. Some of the safety measures that you should put in place include:

  • Using proper lifting techniques to avoid injuries.
  • Storing hazardous materials safely.
  • Securing your inventory with locks and alarms.
  • Making sure that only authorized personnel have access to your inventory.
  • Installing security cameras, alarms, locks, gates.

9. Use Quality Control Methods

Using quality control methods can help to ensure that your inventory is in good condition and fit for sale. This can include inspecting items when they’re received, conducting regular inventory counts, and using barcodes and RFID tags to track your inventory.

looking at tablet - warehouse analytics

Tips for Improving Warehouse Inventory Efficiency

There are a number of ways to improve inventory efficiency in a warehouse setting, including:

  1. Streamline Receiving: This can be done by implementing a system wherein all incoming shipments are logged and tracked. This will allow warehouse staff to quickly and easily locate any specific item that may be needed.
  2. Improve Organization: This means creating a system that logically arranges items in the warehouse so that they can be easily found when needed. This can be done through the use of shelves, bins, and labels. By taking the time to organize the warehouse properly, staff will be able to save time when looking for specific items.
  3. Keep an Accurate Inventory: This can be done through the use of barcodes or RFID tags. Using these tags, you  can track items as they move through the warehouse, and they can also be used to locate items that may have been misplaced. By taking the time to implement these tracking methods, warehouses can ensure that their inventory is always accurate and up-to-date.

Tips for Organizing Your Warehouse Space

Proper warehouse inventory management requires careful consideration of how your warehouse space is being used. There are a number of ways to optimize your warehouse space, including:

  • Utilize vertical space as much as possible. This can be done by installing shelving units and racks that extend to the ceiling.
  • Group similar items together in one area to make it easier to find what you need.
  • Label all shelves and bins clearly so that everyone knows where things are supposed to go.

Tips for Handling Seasonal Changes and Unexpected Increases in Demand

As a supply chain business or manufacturer, you are responsible for ensuring that products are delivered on time and in good condition. This can be a challenge at the best of times, but it can be especially difficult during seasonal changes or periods of unexpectedly high demand.

Here are some tips to help you navigate these challenges:

  • Communicate early and often with your clients. They will need to be aware of any potential delays so that they can make alternate arrangements if necessary.
  • Have a contingency plan in place for when things go wrong. This might include partnering with another 3PL who can pick up the slack if you are unable to meet demand.
  • Be flexible and adaptable. Things rarely go according to plan, so being able to adjust on the fly is essential.

By following these tips, you will be better prepared to handle whatever challenges come your way.

Tips on How to Deal with Damaged or Defective Products

As any supply chain manager knows, damage and defects are an inevitable part of doing business. Whether it’s a carton that’s been crushed in transit or a product that didn’t meet quality standards, dealing with damaged goods is just part of the job.

Here are some tips on how warehouses can best deal with damaged or defective products:

1. Invest in Quality Control

One of the best ways to deal with damaged goods is to prevent them from happening in the first place. That’s why it’s important to invest in quality control measures. By conducting regular inspections and audits, businesses can identify potential areas of improvement and take steps to prevent damage from happening.

2. Have a Clear Returns Policy

When customers receive damaged goods, they usually want to return them for a refund or exchange. That’s why it’s important to have a clear returns policy in place. This policy should outline how customers can return damaged goods and what they can expect in terms of refunds or replacements.

3. Keep Good Records

When damage does occur, it’s important to document it thoroughly. This documentation will be used to file insurance claims and help businesses track trends over time.

How to Choose the Right Inventory Management Software

There are a few key factors to consider when choosing a warehouse inventory management software. First, you’ll need to decide what type of system you need.

On-Premise vs. Cloud-Based Systems

There are two main types of management systems for warehouse inventory: on-premise and cloud-based. On-premise systems are installed on your company’s servers, while cloud-based systems are hosted by a third-party provider.

Features and Functionality

Next, consider the features and functionality that you need. Some inventory systems offer basic features like inventory tracking and order fulfillment, while WMS systems offer a more comprehensive suite of tools, including warehouse optimization.


You’ll also need to consider the price of the system. Inventory and warehouse management systems typically start in the tens of thousands of dollars and can be priced upwards of a couple hundred thousand dollars. However, many system providers now charge on a subscription basis. For a much smaller fee, you get full access to the system as well as technical support to ensure that the system is always up and running.

Logimax WMS is a cloud-based warehouse management system that offers all of the features and functionality you need to streamline your inventory management process. Logimax WMS is priced on a yearly subscription basis, so you can get started without having to make a large upfront investment.

Standalone vs. Add-On System

Finally, you’ll need to decide whether you want to purchase a standalone system or integrate your warehouse inventory system with your existing enterprise resource planning (ERP) system. If you have an ERP system in place, it might make sense to integrate your inventory system with it. This would allow you to share data between the two systems and improve efficiency. However, if you don’t have an ERP system, you can still purchase a standalone WMS or inventory system.

Logimax WMS: Inventory and Warehouse Management for 3PLs, Distribution Companies, and More

Logimax is a comprehensive WMS built for 3PLs and distribution companies, but can also handle complex industries such as consumer packaged goods, pharmaceuticals, cold storage, and more. Our system is browser-based and lives in the cloud , so it can be accessed from anywhere, at any time. Logimax WMS also integrates with existing ERP systems or other complementary software solutions such as EDI, TMS, etc.

Some of the key features and benefits of Logimax WMS include:

  • Comprehensive inventory management including real-time tracking of stock levels, locations, and movements
  • Flexible order management including support for multiple order types, custom workflows, and user-defined rules
  • Powerful reporting and data analytics tools to help you optimize your warehouse operations
  • Support for multiple warehouses and stock locations
  • Integration with popular ERP systems such as SAP, Oracle, or Microsoft Dynamics
  • Scalable and modular design so that you can add new features and functionality as your business grows

If you are looking for a comprehensive, cloud-based system that offers all of the features and functionality you need to streamline your inventory management process, Logimax WMS is the perfect solution for you.


By following these tips, supply chain businesses can ensure that their warehouse is well-organized and prepared to handle any challenges that come their way. Implementing these tips will help warehouses run more smoothly and efficiently, which will ultimately lead to happier customers and higher profits.

Logimax WMS is a comprehensive warehouse management system that can help you streamline your operations and improve your bottom line. For more information on how Logimax WMS can benefit your business, contact us today.

3PL written

3PL Best Practices: Tips for Third-Party Logistics Providers

If you are in the business of logistics, then you know that third-party logistics (3PL) providers are a vital part of the supply chain. 3PLs provide critical support to companies that need help getting their products to market. But what makes a good 3PL? And how can 3PLs improve their performance and gain a competitive advantage?

In this blog post, we will discuss some best practices for 3PLs and offer tips for success. We will also introduce Logimax WMS, a tool that can help manage 3PL operations and improve business efficiency.

What Makes a Good Third-Party Logistics Provider (3PL)?

There are many factors that go into making a good third-party logistics provider.

First and foremost, a good 3PL Provider is one who can offer its customers comprehensive and integrated supply chain management solutions. This means that the provider has access to the necessary resources to handle all aspects of the customer’s supply chain needs, from transportation and warehousing to inventory management and order fulfillment.

Although, not all 3PLs handle every aspect of the supply chain. Some specialize in specific areas, such as transportation or warehousing, for example. However, it is important to offer a comprehensive solution to your customers within the range of services you provide.

In addition, a good 3PL Provider is one who is able to offer its customers customized solutions that meet their specific needs. No two businesses are alike, and each has its own unique set of supply chain challenges. A good provider will take the time to understand the customer’s business and develop a solution that is tailored to their individual needs.

A good provider will also be proactive in their approach to the customer’s experience, always having the goal of improving customer service. They should have a team of highly skilled and knowledgeable customer service representatives who are available to help their clients with any issues that may arise.

Finally, a good 3PL Provider is one who is always looking for ways to improve and innovate. The logistics industry is constantly evolving, especially with the online commerce evolution. It is important for providers to keep up with the latest trends and technologies. By investing in new tools and processes, providers can maintain a competitive edge and offer their customers the best possible service.

Today’s challenging market and business environment mean that the value supply chains provide is greater than ever. 3PLs with a unique value proposition can reap the rewards of their forward-minded logistics efforts.

Warehouse with conveyor, icons showing different processes

3PL Best Practices: For Third-Party Logistics Providers and Supply Chain Companies

Determine and Measure Key Business Metrics

The first step in implementing best practices for 3PLs is to determine the key business metrics that will be used to measure success. These metrics will vary from business to business, but some common examples include on-time delivery, order accuracy, transportation costs, and customer satisfaction.

Once the key metrics have been identified, it is important to track them on a regular basis and use them to inform decision-making and business process improvement.

Invest in Technology

Technology can be a powerful tool for 3PLs. By investing in warehouse management systems (Logimax WMS), transportation management systems (TMS), radio frequency identification (RFID), digital payment processes, and other technologies, providers can automate many of the tasks associated with managing the whole supply chain. This includes tasks such as order processing, inventory management, and recording shipment transportation progress.

This can free up time and resources that can be reinvested in other areas of the business. In addition, technology can provide benefits like smart contract management, real-time shipment visibility, as well as the ability to track data and KPIs. This can help a company achieve valuable insights into its operations and identify areas for improvement.

Develop Strong Partnerships

3PLs rely on partnerships with transportation carriers, warehousing facilities, and other suppliers to support their operations. It is important for providers to develop strong relationships with these partners and establish clear lines of communication.

By building stronger partner and better carrier relationships, and collaborating closely, providers can optimize their operations and provide their customers with the best possible service. Not to mention lowering freight spend and other costs.

Cross Train Employees

In order to be successful, 3PLs must have a team of highly skilled and knowledgeable employees. One way to ensure that employees are prepared for the challenges of the job is to cross-train them in multiple areas of the business.

This will give them a better understanding of how the different parts of the supply chain work together and allow them to more effectively solve problems.

Ensure Your Inventory is Accurate

An accurate inventory is essential for 3PLs. If a provider does not have an accurate count of the products in their warehouse, they will be unable to properly fulfill orders and may end up losing money.

There are many ways to improve the process of managing inventory, such as implementing barcoding and RFID technologies, conducting regular physical counts, and using data analytics to identify patterns.

Perform Cycle Counts

An effective way to manage inventory levels and prevent stock-outs is to perform regular cycle counts. By counting inventory on a regular basis, providers can identify discrepancies quickly and take corrective action. This will help to ensure that customer demand is always met by having products in stock.

Streamline Your Receiving Process

The receiving process is one of the most important aspects when creating a more efficient logistics operation. In order to make this process more efficient, providers should use barcodes and RFID tags, set up an accurate receiving schedule, and train employees on proper receiving procedures. By taking these steps, providers can improve the efficiency of their operations and reduce the risk of errors.

Keep a Clean and Organized Facility

A well-organized and clean facility is essential for 3PLs. Not only does this create a better working environment for employees, but it can also help to improve efficiency and accuracy. Providers should create an organized storage system, implement regular cleaning schedules, and use labels and signage to clearly identify products.

Invest in Robotics and Automation (Only if it Will Increase ROI)

Robotics and automation can be great ways to improve the efficiency of 3PLs. By investing in these technologies, providers can reduce the need for manual labor, minimize errors, and increase productivity.

However, it is important to note that not all automation technologies are right for every business. Before investing in robotics and automation, providers should carefully consider the needs of their operation and the potential return on investment.

Implement Warehouse Zone Planning

Warehouse zone planning is a great way to improve the efficiency of 3PLs. By creating zones for different types of products, providers can more easily track inventory and fulfill orders. Additionally, this method can help to reduce congestion in the warehouse and make it faster and easier for employees to move around, thereby yielding lower costs.

Optimize Putaway Processes

The putaway process is one of the most important steps in third-party logistics. In order to optimize this process, providers should use data analytics to identify patterns, establish efficient storage locations, and train employees on proper procedures. By taking these steps, providers can improve the efficiency of their operations and reduce the risk of errors.

Choose the Right Picking Process

There are many different picking processes that 3PLs can use. The most important thing is to choose a process that will work best for the specific needs of your operation. Some factors to consider when choosing a picking process include order volume, product mix, and storage density.

Logimax WMS: A Tool Designed for Third Party Logistics Companies

In addition to following the best practices outlined above, 3PLs can also use Logimax WMS to help manage their operations. Logimax WMS is a cloud-based warehouse management system that provides users with the tools they need to streamline their operations and improve efficiency.

Some of the features offered by Logimax WMS include:

  • Automated Receiving and Putaway: With Logimax WMS, providers can automate their receiving and putaway processes, which will help to improve accuracy and reduce labor costs.
  • Inventory Management: Logimax WMS provides users with the ability to track inventory in real-time, which will allow them to avoid stock-outs and ensure that orders are fulfilled on time.
  • Order Fulfillment: Logimax WMS offers a number of features to help users fulfill orders more efficiently, including order picking, packing, and shipping.
  • Reporting: Logimax WMS provides users with the ability to generate reports that will help them track their performance and identify areas for improvement.

By investing in Logimax WMS, Third Party Logistics companies can improve their efficiency and offer their customers a better experience. To learn more about Logimax WMS, visit our website or contact us today.


Third-Party Logistics companies play a vital role in supply chains and it is important for them to follow best practices in order to be successful. By using data to their advantage, streamlining their processes, investing in training, and using a comprehensive WMS, providers can improve their operations and provide their customers with a better experience. Following this advice can make all the difference for freight and logistics industry companies.

If you are looking for ways to improve your 3PL business, then consider implementing Logimax WMS. It is a powerful tool that can help you manage your operations more effectively and improve your bottom line.

Contact us today to learn more about Logimax WMS and how it can help your business.

two men in hard hats

Warehouse Security Protection: Part 2 – Physical Security

In the first part of this series, Warehouse Security Threats: Part 1 – Theft, we discussed the importance of warehouse security and how to protect your business against potential theft. In this second part, we will look at physical security measures that you can take to further safeguard your warehouse. These measures include installing security cameras, using alarm systems, and other safety measures. By taking these precautions to improve warehouse security, you can help ensure that your warehouse is safe from unauthorized access and theft.

Assaults in the Workplace

menacing man with wrenchAccording to the National Safety Council (NSC), workplace assaults resulted in 20,050 injuries and illnesses involving days away from work and 392 fatalities in 2020. Violence is actually the fifth leading cause of death in the workplace, with the deadliest incidents involving an active shooter. This alarming statistic should not be ignored by any warehouse or 3PL.

Examples of on-the-job violence in a warehouse can include criminal intent, customer or client, worker-on-worker, and domestic, which typically targets women. Managers and safety professionals at every workplace should develop a policy on violence that includes:

  • Staff training
  • Developing an emergency action warehouse security plan
  • Conducting mock training with local law enforcement
  • Adopting a zero-tolerance toward workplace violence and assaults.

Of course, there is no way to know if or when an assault could take place in your warehouse, however here are some behavioral signs to look out for:

  • A decline in job performance and/or unexplained absenteeism
  • Withdrawn, depressed, or makes comments about suicide
  • Resistance to change and accusations of unfair treatment
  • Evidence of excessive drug or alcohol abuse
  • Non-compliance with company policies
  • Severe emotional or mood swings
  • Paranoid delusions

It is important to be alert and pay attention to your warehouse employees. Encourage them to report any situations that could be a warehouse security risk to their supervisor or management. It could end up saving lives!

Intentional Damage or Destruction of Property


firefighters putting out warehouse fireThere are many ways to protect your warehouse, people, and contents from fires being set maliciously; aka arson. Make sure your warehouse security includes safety systems like foam suppression or sprinkler systems. Don’t forget about alarm buttons or additional lighting near potential points of entry so they can be activated if anything goes wrong.

Lead your warehouse security safety team to prepare employees for emergency situations by executing practice drills and evacuation instructions. Be sure to include an outside location for evacuation meet up to account for all employees on site. Being prepared with fire warehouse security measures can and will save lives if an emergency were to arise.


Posting signs notifying would-be vandals of warehouse security systems and installing security lighting fixtures with alarms attached to them will deter many crimes before they happen. It’s important to note that vandalism has far-reaching consequences. Those who commit the crimes often say their actions aren’t really harming anyone but rather just hurting property. This is far from the truth as property destruction leads to heavy emotional stress and financial losses.

Violence Against Your Physical Warehouse

Intentional destruction of your physical warehouse is often considered ideological violence. This type of attack more commonly comes in the form of riots or looting and can occur at any time with little warning. Warehouse security measures often overlook this threat form. It’s important that every warehouse, 3PL, or distribution center treat this threat with high priority, regardless of what you think might happen in the near future.

This type of terrorism occurs when certain individuals disagree about what the company represents, products carried by the business, or choices made by management, leading them into taking violent actions against the facility. It could lead to millions of dollars of damage if it happens. It’s important to protect yourself AND your employees from these crimes by consulting a security expert on warehouse security who’ll help set precautions and protocols.

Unapproved Facility Access

Theft or Loss of Secure Entry Badge

If someone steals or loses an employee’s badge, it can become a big headache for warehouse security and is a cause for alarm. Scannable ID cards are a great way to control facility access, however, it is not infallible because activated badges still allow access to the warehouse. It is important to inform your workers that they should notify management immediately if this threat to warehouse safety happens so that new employee IDs can be issued while deactivating old badges’ access.

Robberies or Unlawful Entry

hand on door handleOwners are in danger of being robbed when they let their guard down on 3PL or warehouse security. Robberies can happen at any time, especially during off-hours with little human contact. However, unauthorized access for a robbery doesn’t always happen when a facility is closed which can put employees in danger’s way whether it is for company property or employee personal items.

Alarms and/or cameras should be installed and monitored so you can be notified of a situation and for documentation of a crime afterward. Be sure you have a warehouse security plan in your company policy so employees are aware of proper procedures to take in case of a break-in.

Outside Guests

Visitors will come to your warehouse more often than one might expect. Whether they are customers, delivery personnel, or personal guests they all need to be tracked through a visitor logbook and issued badges limiting access to protected areas. An electronic logbook will create databases for reports to keep track of who was visiting and what type of visit each person had. This information can help your warehouse better manage warehouse security measures and resources, and identify the employees responsible for a particular visit while protecting your facility, employees, and inventory.

Hold-the-Door Access

Holding the door open for someone and a person ‘sneaking’ in behind you are two different ways that unauthorized people can enter your facility. Someone can follow an authorized staff member into the warehouse without their knowledge. An employee could unwittingly hold the door open for someone who – by design – has their hands full carrying equipment or even a box of donuts and a cup of coffee! If your warehouse security includes a one-badge scan system instead of a carousel gate this could be a vulnerable point in entryways. It is important to train all staff on proper security policies to avoid such non-compliant situations.

Unintentional Situations

Severe Weather

The weather is unpredictable and can cause a variety of problems for your warehouse or 3PL. Natural disasters like fires, hurricanes, or tornadoes take away precious work time while also risking employee job loss if your facility suffers damage. To avoid disruption during these times it’s important that you have emergency preparedness plans along with a disaster relief agenda so downtime will be minimal.

You may think that your company’s supply chain is safe from the effects of climate change, but according to a recent study by Harvard Business Review. Nearly 80% percent have no alternative facilities lined up or emergency business plans in case a disaster strikes. The study suggests that a manufacturer, 3PL, or warehouse will quickly recover if it has a functional business continuity plan.

A business emergency plan going forward should cover crisis management protocols, supplier and customer communications, disaster recovery, and insurance. Be sure to communicate with your customers, suppliers, and other leaders in the warehousing industry to plan for any possible weather-related risks.

Accidents, Equipment Failure, or Urgent Situations

coffee spilled on computer keyboardHazards are a given in any warehouse. Employees could spill beverages on critical tech equipment, a facility’s sprinkler system could malfunction, or security systems could crash affecting the entire building and rendering quite a bit of damage. In order to circumvent any unexpected damage to your inventory or equipment it is important that you have warehouse security system policies and plans in place.

Regular equipment and policy adherence inspections can aid your warehouse’s physical security. Be sure your company makes preventative maintenance a priority to thwart future issues. Preventative maintenance is usually a given in any facility but may be pushed on the back burner if other priorities arise.

Update Warehouse Security for the Future

With today’s threats to public safety, it is more important than ever for 3PLs and warehouses to review security procedures regularly. Consider installing access badge systems so that only employees with appropriate clearance are able to enter the building and make sure each department has its own fire extinguisher available with appropriate training. Metal detectors or weapons detection systems should also be considered on a location-by-location basis. It is critical to maintain strict entry requirements both inside AND out by hiring reputable employees and working with trustworthy vendors.

tablet with security camera footageQuick list of security additions to consider:

  • Install entrance security doors
  • Log all visitors electronically
  • Fortify any windows with extra security
  • Review warehouse insurance policies on a regular basis
  • Make alarm panic buttons readily available to employees
  • Add internal and external security cameras with cloud backup
  • Install brighter lighting
  • Install a professional alarm system or upgrade as needed
  • Install weapons detection systems
  • Hire security guards and/or perform security checks at the close of business
  • Limit access with control systems and security cages
  • Use warehouse management system (WMS) software for inventory tracking

In order to protect your company from physical risks, it’s important to develop a facility security checklist and know how to conduct an in-depth physical assessment of your warehouse or 3PL.

We’ll cover more about cyber security in part three of this series so stay tuned! In the meantime, contact Logimax today for questions about our WMS and cloud services.

gloved hands stealing box at night

Warehouse Security Protection: Part I – Preventing Theft

Welcome to the first in a three-part series on Warehouse Security Protection. In this series, you will find information on how to identify areas of your company most likely at risk for security threats like theft, physical intervention (intentional or unintentional), and cybercrimes, plus helpful prevention methods against common security risks.

While it can be difficult to think about 3PL or warehouse security threats, it’s important to remember that they can happen when you least expect them. One such threat to your business that can greatly affect your bottom line is theft. It is always better to be aware of your vulnerabilities rather than being complacent or ignoring the risks when it comes to theft of company-owned equipment or tools, customer inventory, or your finances.

Warehouse Security Protection Against Theft

While many warehouses have security measures in place to prevent theft from outside sources, your distribution center is actually more at risk for internal theft. Consider that on any given day, employees, insiders, and contractors all have access to your facility, and could take advantage of an opportunity to steal from you. By identifying your risk areas and putting effective security measures in place, you can avoid having to suspect every employee or guest of a potential crime.

Company-owned Property

hammer and wrench iconStealing company-owned property ranks among the highest kind of theft that can happen to a business and it is usually internal. When people think about the theft of company property, paper clips, post-it notes, and pens typically come to mind. It can be much more than that, especially in a warehouse. While the majority of people in your facility will not steal from you, the risk still exists.

Most-Stolen Items
Office supplies. In addition to paper clips and pens, people also like to take staplers, batteries, first-aid items, coffee, and cleaning products.
Paper products. Copy paper, post-it notes, paper towels and plates, toilet paper, and notepads are most likely to be (or most often) stolen.
Computerized tech and accessories. Items may include laptops, cell phones, chargers, extra cables, tablets, printers, scanners, and headsets.
Work tools. Typically, any tool that is easily concealable is fair game to a thief. Items like wrenches, hammers, drills, tape guns, safety equipment, and measuring tools are all vulnerable.
Documents and data. Sensitive information in printed or digital form is also at risk. It is never ideal for competitive bid proposals, banking information, or customer lists to end up in the wrong hands – especially those of your competitor!

Follow these tips to prevent or minimize theft of company property:

–  Tag your tools. Tool and equipment can be tracked by attaching tracking tags or serial numbers in the form of barcoded or RFID asset tags, and by keeping a log of assignments in your warehouse system.
–  Tool and equipment cribs. These are a great way to limit access to company equipment and for tracking the daily check-in and check-out of tools. All items should have tracking tags (see above) that allow the equipment to be scanned out in the morning and back in at the end of the shift. Scanning a barcoded employee ID badge at the same time easily connects the tool with the person who had it last, and records it in your warehouse system.
–  Designate a supply supervisor. Have one employee manage all paper and office supplies for your business. Perform weekly inventories and consider implementing a requisitioning system for larger-than-normal supply needs.
–  Track your tech. All computerized equipment and accessories should be tracked through your IT department or by your office manager. Logs should include model and serial numbers, the person assigned the equipment, date of the assignment and/or return, item health, and any new tech requests. This will help track missing items and aid in spotting any abnormalities.
–  Document and data protection. All departing employees should be removed from system and equipment access. Password-protect important documents and only allow limited access to assigned employees. Most importantly, establish policies that address the ethics of sharing company-owned information and require signed, non-disclosure agreements where applicable.

Customer Inventory

box iconAll distribution centers take responsibility for protecting their customers’ products as part of a warehouse/client partnership. Therefore, a warehouse should have protocols and systems in place to ensure that the inventory is safe through warehouse management system (WMS) software that provides real-time inventory tracking and access control to reduce the risk of theft. However, if inventory shrinkage does occur, a warehouse should be able to identify when, where, and how it happened as well as resolve the problem immediately.

Warning Signs of Potential Inventory Theft
Stock levels don’t match what is in the system. If you uncover multiple instances where your WMS software inventory levels and reports do not match what’s actually on the shelves, you could have a thief.
Inventory discrepancies happen on certain days. So maybe you’ve noticed a problem with inventory shrinkage, but not every day. Or that the discrepancies only happen when certain employees are working. That is a sure warning sign worth looking into through your inventory management system.
Staff rumors of theft. Whether you call it shop talk or office gossip, every warehouse has its internal grapevine of information. If you hear employee rumors of theft happening, investigate immediately.
Important documents are missing or duplicated. If backup receiving or shipping documents are missing or have been duplicated, this could be a red flag that someone is trying to cover up potential thievery or is a security threat.
Inventory is regularly found near exits. Does inventory belong near exits? Not if it isn’t being received or shipped out. If you regularly encounter random products sitting around near entry points or loading dock areas without corresponding labeling or documentation, someone could be placing them there to be casually picked up and walked out the door later.

Theft Prevention Methods

Conduct warehouse employee background checks. Whether or not you have had previous issues with internal theft of any kind, conduct background checks on all new hires. That way you can avoid employing people that have a history of stealing.
–  Ensure awareness of policies and procedures. Every warehouse should have a standard set of policies and procedures when it comes to ethics and handling customer products. Raise awareness for policy adherence and, when applicable, enforce termination due to theft.
–  Limit inventory access. Access control to inventory is not an easy task for any warehouse as it can disrupt daily operations. However, if you are able to add security cages or restrict access to products that typically are considered ‘high-demand, high-theft’ potential to only certain individuals per shift coupled with an inventory management system, it reduces your risk of inventory shrinkage by warehouse employees.
–  Conduct regular cycle counts. To keep an eye on your customers’ inventory, conduct stock cycle counts regularly. These can be performed randomly or weekly with the use of your WMS software and connected mobile devices to scan what is in stock.
–  Maximize managerial visibility. There’s a common saying, “When eyes are on the floor, nothing goes out the door.” Management visibility reduces an employee’s opportunity to steal and thus is a great way to reduce warehouse inventory shrinkage.
–  Utilize security cameras. It’s a proven fact that security cameras help deter crime as well as document issues. Let your employees know that cameras are in the facility for their safety as well as for overall warehouse security.


hand and coin iconEmbezzlement and stealing petty cash are the usual forms of monetary theft in a company. While it may take a great deal of legwork to supervise your finances, if you don’t take the time to care about where your money is going it could destroy your business.

Be on the lookout for these types of monetary crimes:
Phantom Supplier. Phantom (or Ghost) suppliers are fake accounts created by a dishonest employee (who is the same employee in reality). These accounts are used to create a paper trail of false transactions to the fake supplier. This type of embezzlement allows the employee to make legitimate-seeming payments to the ghost account, re-directing (and stealing) your hard-earned money.
Fraudulent Refunds. An untrustworthy employee can also create unauthorized refunds to a non-existent customer. In these cases, the funds are actually issued to the perpetrator.
Customer discounts. This occurs when a dishonest employee undercharges a customer for your services in the books but actually charges them full price — allowing the employee to pocket the difference. They can also discount vendors, friends, and family directly, then split the difference, which also affects your bottom line.
Wrongful Bad Debt. Watch out for this scheme! Bad debt is typically written off by a company as common practice. In this case, the thief deposits customers’ payments into their own bank account, knowing that your business will eventually write it off.
Payroll Scam. Believe it or not, some bad employees can even set up fake employees on the company payroll and funnel the money directly to themselves under their fictitious identities.

How to Spot the Warning Signs of Embezzlement

–  They seem ‘attached’ to a certain vendor. Accounting department employees typically do not spend a large amount of time communicating with vendors. However, if an employee’s role does not require constant contact, yet they are always talking to a vendor, it might be worth looking into. Unfortunately, financial crimes can occur with an employee and vendor partnering to scam your company and split the bounty.
–  Their personal purchase habits change. Usually, each employee has a personal budget and corresponding style based on their pay structure. If you notice that their personal spending habits and choices are more flamboyant than before, and they didn’t win the lottery, it might be worth investigating.
–  They like to work when no one else is around. An accounting department’s day usually ends at 5:00 p.m. unless end-of-quarter financials or special projects require extra hours. If an employee always seems to need more hours to get their job done, they may be working on their scams to cheat you out of your hard-earned dollars.
–  They don’t use their vacation time. If a scheming employee were to take a vacation, an employee temporarily filling their role may uncover evidence of their crimes and report it, thus ending their reign of theft.
–  Petty cash doesn’t balance with receipts. It could be one dollar or 20 dollars that may go missing every once in a while, but over time it can add up and hurt your wallet.

Here are a number of ways to protect your company against embezzlement:

  • Split accounting responsibilities. The best-case scenario for any company is to cross-train your accounting department employees in all jobs and then split up the duties. All responsibilities and financial tasks should never fall on just one individual as a form of security checks and balances. Consider adding in an extra layer of security in which only upper management can authorize large transactions to lower your risk of fraud.
  • Do thorough background checks before hiring. To reduce your risk of employing a potential thief, always conduct extensive background checks on new hires in your accounting department (or all departments for that matter, including warehouse employees) as one simple security solution. Review financial policies and procedures on a regular basis with all applicable employees as well.
  • Update logins and authorization often. More companies are taking this route in the digital age for added protection of their finances, information, and operational structure. Consider adding multi-factor authentication on a regular basis if your company does not already do so.
  • Protect all payment methods. Whether it is cash, customer or supplier banking details, credit cards, or checks, ensure that all payment methods are secure from unauthorized access by employees.
  • Restrict access to petty cash. Always require receipts for disbursements, limit who can access it, and keep it under lock and key at all times.
  • Show your presence. Being seen is a great form of financial protection. Simply walk around your accounting department to check on the day’s progress. Security cameras are an excellent option for those with limited time or staff. People are less likely to steal from you if someone is always watching.

Insurance is Key to Protection

The best protection against these crimes is always by preventing theft, but so is commercial security insurance in case of theft. If your company does experience a financial crime, having the right protection can help your warehouse recover any losses. As a matter of fact, most customers will require your 3PL or warehouse to provide certificates of insurance prior to entering the partnership.

Consider undergoing a security assessment and a commercial crime policy as part of your security solution to protect your company’s finances. Ask your insurance provider for an all-encompassing list of coverage options available to you. IRMI defines a crime insurance policy as one that covers different types of crimes: employee dishonesty; forgery or alterations; computer fraud; funds transfer fraud; kidnap, ransom, or extortion; money and securities; and money orders and counterfeit money.

Identify the warning signs, be aware of your company’s risk potential, and take preventative measures for the best protection from theft and inventory shrinkage in the warehouse. Watch for Logimax’s next post – Part Two: Physical Security – or subscribe to our blog now to be immediately notified of this and additional information that can help make your warehouse or 3PL more secure.

Worker scanning a return in warehouse

How to Maintain Order and Process Returns in the Warehouse Efficiently

Product returns are always a hassle. Whether it’s due to shipment damage, product malfunction, or product recall, managing returns effectively is essential for 3PLs and warehouses. One of the biggest challenges when handling returns is keeping employees’ labor-intensive tasks well organized. Through automated processing and integration with external systems, your 3PL warehouse management system (WMS) software should be easy for employees to use and track stock to process returns efficiently.  

Your Logistics Software is Key

WMS software is the backbone of any distribution center, and it can help you maintain order and efficiently process returns. With a powerful, easy-to-use warehouse management system, you will be able to track all inventory from initial arrival to shipping orders out the door. And since your WMS also handles returns or recalls, you can make decisions based on real-time data rather than estimates or guesses. 

The best 3PL WMS software should supply product information and traceability for every single item moving in or out of your facility. This includes inventory location assignments, product expiration dates, and lot numbers. Lot and expiration date details should automatically be tied to each item’s barcode since all inventory transactions require a scan. Warehouses whose WMS supports radio frequency and barcode labeling can leverage their wireless network to experience dramatic increases in inventory accuracy, picking accuracy, and productivity.  

Efficient logistics operations are vital to product returns and recalls. The best WMS software from Logimax optimizes efficiency by:  

  • Automatically sorting single or batch orders by date 
  • Measuring user productivity against established time standards 
  • Automatically enforcing product consolidation and rotation based on item and location rules 

WMS Software Can Help with Labor Savings 

All return and recall processing rules can be pre-set and tracked through your WMS softwareLogimax can even work with your HR system via advanced metrics to preplan and optimize workflow to track labor hours. Utilizing barcoded employee badges and asset/equipment tags, 3PL warehouses can easily trace employee time and attendance, labor and equipment costs for returns, and how long employees and equipment are assigned to activities. With the WMS software and your HR system working together, you will know exactly how high your labor costs are per task and can make any future accommodations for better productivity.   

Instituting Return Procedures 

Return guidelines are usually specified by each customer based on their requirements. However, 3PL warehouses always implement a standard set of procedures for returned goods because you must have a set way of physically handling and processing inbound returns. Every step in the process can be stored in Logimax’s WMS software for full return traceability. 

1.  Receiving Returned Inventory

A Return Merchandise Authorization (RMA) or Return Goods Authorization (RGA) form should always be filed prior to the initial product return. These forms can easily be generated and sent using a web client portal. Customer name, return authorization date, order number, and carrier tracking number are pieces of information usually included. On arrival at the warehouse, the shipment is compared to the RMA/RGA for accuracy. Once received into the WMS system, returned products should be marked accordingly and moved to the inspection area.

2.  Inspecting Returns

When you receive a returned item, it’s important to be thorough in your quality inspection process. There are a few different things you’ll want to check for: 

  • Carton and product damage 
  • Product expiration dates 
  • Product tags, including barcodes and stickers 
  • Any other markings on the product or packaging that may indicate tampering or reconditioning 

Food items cannot be resold once returned. Log these returns immediately and dispose of the food product accordingly. Return damaged or malfunctioning products to the manufacturer or destroy them per customer instructions, recycling procedures, and governing agency guidelines.   

3.  Repacking Inventory

Non-food products can be resold if the item is not damaged or malfunctioning and damage is only to the packaging. These items can usually be repacked and added back into inventory with a new SKU assigned to note that it was previously returned. These items are sometimes offered at discounted prices — as warehouse deals or opened box discounts. Repacks occur either at the warehouse facility or the manufacturer depending on the 3PL warehouse partnership.  

Procedures for Recalls

Distributors and 3PLs both can be incredibly valuable to brands in managing their product recalls. During a recall, a warehouse must be able to provide complete life cycle information on affected SKUs, including lot number and expiration date. It’s vital that the warehouse is aware of what recalled inventory is in-house, quantities shipped out already and to whom, and how much recalled product is yet to be received.  As a general rule, recall procedures should include: 

  • Report all prior shipments of recalled products to your client. 
  • Immediately put a hold on all of the recalled SKUs. No product marked for recall should be allocated or shipped, even if it is on the staging dock. 
  • Assign a segregated area of the warehouse for recalled products. For better visual identification, indicate the area with appropriate signage and mark items with hold tags. 
  • Alert customers. This may be done by the manufacturer or distributor depending on procedural recall assignments. Customer communication typically is in the form of an email and sometimes accompanied by a press release. 
  • Do not receive any additional recalled product from the manufacturer even if it is on order.  
  • Change the class code of the recalled product SKU for potential ordering, picking, receiving (returned), or destroying under specified guidelines and regulations.  
  • Generate and issue appropriate reports to the client. 
  • Some clients may require a mock recall as part of their partnership with the warehouse to ensure that the process will run smoothly, should a recall occur.  

Trends in Returned Products

Logimax WMS software can also aid your clients in identifying trends in returns by generating customized reports. These can include which products have been returned, why, when, and how often over select periods of time. This is particularly helpful in identifying future recalls, uncovering packaging or shipping issues and problems, and highlighting possible product defects or opportunities for improvement. The ability to provide this information to your clients gives your business a huge advantage. 

Because the supply chain is built on relationship building and cooperation between your 3PL warehouse and customers, look into finding the right technological solutions for your inventory tracking. Make your returns processes more effective by integrating the best software for warehouse management systems from Logimax. 

three people shaking hands in warehouse

How to Get More Warehouse Customers and Keep the Ones You Have

A primary goal for any business is to keep their current customers and increase the bottom line with new sales. Logistics companies are no different. You secured and have kept your current customers for a reason – you’re doing a great job overall. Whether your facility offers services designed to address an industry’s unique needs or is an expert in managing supply chain logistics, it’s important to know what your business is best at and to promote it. Do your current customers and prospects know all of your capabilities? If you promote your strong points, your company can maintain a competitive edge over other warehouses serving the same market, resulting in maximum customer satisfaction and increased growth. 

Identify What Makes Your Warehouse Different from the Others

It is extremely important to define your position in the market. You don’t want to end up lost in a saturated market of indistinguishable and interchangeable warehouses in the eyes of prospective and current customers. Emphasize how your company is different and highlight the specifics. 

Value-Added Services 

Compile a complete list of all value-added services your business offers and pick out the strong points. Are you experts in logistics and freight or a fierce price negotiator? Are you a go-to for high-volume distribution customers? Do you offer on-site kitting and assembly or repacking and rebranding? Are you known for efficiency at processing returns or managing recurring subscription shipments? Say so! Use your proven track record and customer service ratings to your advantage. 

Capabilities of Your WMS Software

Obviously, not all warehouses use the same warehouse management system (WMS) software or the same software provider. In addition, even the best WMS software companies do not all provide the same features and services. Highlight the unique features of your warehouse system and how the flexible features can be utilized to address each of your clients’ needs. Items important to a prospective warehouse customer might include customized and itemized billing, automated and custom reporting, 24/7 access to inventory and online ordering, top-notch security, error-free operation (enhanced by the use of auto-ID equipment), and system up-time. Perhaps most important is that your system offers easy integration with their preferred shopping cart as well as other external tools like EDI, WCS, accounting, and billing. 


Nobody wants to choose a high-priced warehouse that doesn’t have a proven track record of success for its clients. Let your current and prospective customers know how partnering with your business can actually save them money. One obvious way to prove savings is by highlighting your capability to remove the client’s logistics burden through your industry expertise. Examples could include noting your ability to negotiate shipping prices, high picking accuracy, maximum operational flow, or tiered storage options. However, businesses are also looking to work with trustworthy companies. Seth Rothbard, franchise owner of InXpress adds that “Choosing a logistics partner shouldn’t just be based on the cost, as there will always be a cheaper option somewhere out there. The trust factor is what one needs to be looking for in a reliable partner.” 

Invest in Being the Best

Highlight how your warehouse invests in continual capital and operational improvement. Examples of key growth areas of interest to customers include employee training, installing and updating the best WMS software, technology and machinery investments, accreditations, quality processes, and physical warehouse facility improvements. 

Educate Customers: Can They Increase Sales by Partnering with You?

The benefit of partnering with your warehouse isn’t only about relieving the logistics burden from the customer directly. It also opens doors for them to increase sales. Be sure to inform your current and prospective customers about how your logistics services, combined with your WMS software, can lead to increased profits for them.

One of the biggest benefits for a customer is scalability in the warehouse. They have the advantage of being flexible with inventory levels seasonally and monitoring products with specific life cycles. In addition, and thanks to the expert knowledge your warehouse provides, a customer is able to ship from anywhere, even breaking into the international market and expanding their footprint globally. Highlight the technological advantages your warehouse provides, thanks to your WMS software system, to quickly and efficiently ship products. This helps increase their client’s customer satisfaction rating. All of the aforementioned, combined with the in-depth knowledge your operation brings to the table for each customer, can save them money and increase sales. 

Promote Your Warehouse on the Web

Times have changed quite a bit from industry events, large conferences, and annual trade shows. They are making a comeback; however, the pandemic has made online marketing more important than ever. Warehouses that have harnessed the power of internet marketing have a distinct advantage over their competition. Here are a few tips on how you can increase your warehouse’s online footprint. 

Your Website

Your company website should offer a plethora of information for prospects searching for a new warehouse partner. Be sure all listed information is easy to find and clear, as well as includes your areas of expertise, accreditations, and industry uniqueness on subpages. However, don’t forget about the contact information basics. Contact information should always be easy to find. A Call to Action (CTA) should also be included on the site in more than one place. This can be achieved through call-outs like Contact Us For More Information or Click Here For An Overview. To garner more interest, include customer reviews and testimonials. Given all of the above, be sure to enhance your SEO through keywords and backlinks to increase your 3PL warehouse website’s rankings. 

Social media

Social media isn’t just for teenagers and celebrities. It can benefit your business too! You can find leads or communicate with customers through a Facebook or LinkedIn page. It’s important to note that social media requires prospect engagement on the company’s part. Encourage customers to share their positive experiences with your warehouse, important industry information, or share your informative blog posts. In addition, select company employees can become active in groups or pages. As they interact with current and prospective customers, it often leads to increased company awareness, referrals, and new business. 

Paid and Unpaid Campaigns

Another way to scout for leads is by utilizing internet campaigns, either paid or unpaid. Unpaid campaigns include emailing your current customers and prospects about your warehouse’s latest accomplishments or services. Paid campaigns can come in the form of search engine ads (Google, Bing, Yahoo, etc.) or social media advertising (Facebook, YouTube, LinkedIn, TikTok, etc.). Both types are built on a pay-per-click format. That means you only pay when someone clicks on your ad. Be sure that link goes to the first page you want them to see (it might not be your home page) and where they can take action. When entering into a paid campaign agreement, always target your specific geographic market so you don’t waste money promoting your services to companies too far away to be real prospects. 

To summarize, if you want to attract new warehouse customers and keep the ones you have, you must make a strong case for why they should partner with you over your competitors. Don’t be afraid to highlight what makes your warehouse unique, including the features enabled by your warehouse management system software. To find out how Logimax’s WMS software can help you retain customers and gain more leads, contact us today! 

Warehouse managers and worker talking in a large warehouse

9 Considerations When Choosing the Right WMS System for your Warehouse

Whether you are in the market for a warehouse management system (WMS) or are looking to replace the outdated one you already have, you likely know the benefits of having one manage your operation.

A fully functional WMS gives you greater e-commerce capabilities, gives you better control of your inventory and production process, improves efficiency and speed, and delivers data in real time to help you determine future improvements.

But how do you choose the right WMS for you? The market is jammed with WMS at different price points and capabilities. Here’s how to sort through them to determine which one is best suited for what you need now.

  1. Identify the ROI. How much tangible savings do you expect? You know a WMS will help save labor costs and help you better utilize warehouse space, among other benefits. But to what extent are the savings you need to see? What are the intangible savings?
  2. Determine capability. Are you a single warehouse operator or do you operate multiple locations? Are they all within the U.S. or are some across the border? Figure out which company has a track record of integrating multiple locations, of coordinating multi-facility inventory and split shipment of customer orders?
  3. Direct to customer capability. If your business deals with direct to customer, or e-commerce selling, you’ll want a WMS that specializes in both. They’ll need an interface to e-commerce order processing and small order pick, pack, and ship options, among other things. Pick a WMS that has a track record of functionality in this space.
  4. Flexibility is a must. You may know what your operation needs now, but what about the future? What happens if you get into e-commerce and now you’re dealing with different outbound carriers, higher returns, and other variables you hadn’t anticipated? Get a WMS that has the flexibility to work in all environments and can accompany all order profiles.
  5. Plenty of picking. Any WMS expands your picking options, but what are your requirements? Do you need pick to list, pick to box, zone picking, wave picks, pallet picking, etc.? See which WMS accommodates the kind of picking you need for your operation; you’ll also want a WMS that is flexible enough to handle a range of picking in case you need it in the future.
  6. Carrier capability. Determine which options are available regarding carriers. How well does the WMS you are considering interface with your preferred carriers? What kind of options does the WMS give you to support different configurations for printing shipping invoices, and more? If the WMS does not accommodate your carrier of choice, does it integrate with another system that can?
  7. SaaS or on-premise. Do you want a WMS that is installed into your system or a subscription-based system that exists in the cloud? There are pros and cons to each. The fully licensed model requires hardware, software, professional maintenance, IT support, and more while the software-as-a-service (SaaS) model is more affordable but less secure. Questions to ask are: Which one provides customization? Which has better support? What are the long-term costs versus short-term and is it worth it to invest in a system that might grow your business over many years versus one that will solve your problems now?
  8. Inventory management. Any good WMS will track inventory to give you better accuracy. However, you’ll want one that is comprehensive and can create an audit trail of every location of items, from receipt through shipping; look into how the WMS tracks inventory and make sure that every transaction shows the date, operator, and has a time stamp.
  9. Support matters. What kind of support does your vendor offer? Is there someone available 24/7 or just during certain hours? Which level of support is included and which level is not? What does the support cover? What does it take to have someone onsite or is all the support online by phone? Determine the relationship you’ll have with the vendor post-installation to make sure it aligns with your comfort level moving forward.

Want to explore a warehouse management solution that fits your business? Visit or call (855) 253-8855 to set up a demo or to learn more about our WMS and 3PL software.