Welcome to our three-part series of blogs about third-party logistics management via electronic messaging/EDI. We receive many questions about 3PL from our readers, and we’re excited to share our knowledge of integrating EDI with this business practice.
Outsourcing distribution to 3PLs, also known as public warehouses or logistics service providers, is increasingly popular for companies that are expanding into new markets or simply want to focus on their core strengths by allowing logistics experts to manage the physical storage and distribution of their goods.
To make outsourced logistics seamless and cost-effective, advanced organizations implement electronic communications. Data Masons has worked on over one hundred of these projects with stakeholders who have various levels of capabilities and approach standards. We’ve learned that these projects have consistent patterns that are useful to understand when approaching this type of project.
In our experience with 3PL automation projects, interactions can be generalized into two master file exchanges and five transaction sets (also known as documents). The authors of the X12 EDI Standard clearly understood how to manage interactions with a 3PL – the documents most commonly used by 3PLs are very well-conceived and documented in the X12 EDI standard frequently used by 3PLs.
The second part of our series will continue next week, discussing master file exchanges.
Data Masons has helped many companies integrate EDI messaging with 3PL. To learn more about how to streamline your warehousing, download our data sheet.