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Third-party Logistics (3PL) Management by Electronic Messaging or EDI

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.shutterstock_396462703_warehouse

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 – please join us and subscribe so you don't miss out!

Read part 2
Read part 3

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Third-party Logistics, EDI

Glenn McPeak

Posted By: Glenn McPeak

Glenn is a supply chain expert and has over 25 Years of EDI/ERP solution consulting and ERP/EDI software product design and management. Glenn’s has managed and executed over 200 successful ERP and EDI related projects in a wide array of manufacturing and distribution oriented industries. Glenn is knowledgeable in the following ERP platforms – Microsoft Dynamics AX, Microsoft Dynamics NAV and Microsoft Dynamics GP.

Glenn holds a Bachelor of Science degree with highest honors from Babson College and numerous Microsoft Certifications, including Microsoft Certified Professional.

EDI Made Simple

EDI Made Simple: A New Approach to EDI

If you're about to bring EDI into your processes, this brief will help you avoid the potential pitfalls often encountered. If you’ve attempted to implement EDI already, you’ll likely recognize at least some of the problems we describe, and gain from our explanations on how to avoid them.This paper will present a clear, simple path to successful implementation of a highly productive and profitable EDI initiative in your company.

Download the Paper

Choosing an EDI Solution

Choosing an EDI Solution: Build or Buy?

Choosing an EDI software solution for your company is a serious undertaking. The right choice results in a smooth and painless process with strong positive ROI. The wrong choice can have detrimental effects for years with poor ROI and ongoing operational and support issues. One key question we often hear is “Should we build it or buy it?”.

Download the Executive Brief

Top 10 Mistakes to Avoid

Top 10 Mistakes to Avoid When Selecting an EDI eCommerce Solution

Don’t be caught unprepared with your upcoming EDI project. From the provider and solution, to your business needs post-implementation, a company can prevent costly headaches by being as thorough as possible in their pre-implementation research.

Download the White Paper

Integration Without Customization

Integration Without Customization: 3 Keys to Automated Integration for ERP and EDI

This paper will present the key components of a successful automated integration solution for ERP and EDI without customizations. After reading this paper you'll learn: - how to gain a competitive advantage with this approach to EDI and ERP integration - and how purchasing tools which force customizations to your ERP system can leave you responsible for costly and time consuming modifications to the systems. Following this best practice approach to integration can help you on your way to experience integration success.

Download the Executive Brief