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Data Masons Blog

1 min read

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

December 19, 2018 @ 10:12 AM

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.

Read part 2
Read part 3

Data Masons has helped many companies integrate EDI messaging with 3PL. To learn more about how to streamline your warehousing, download our data sheet.

Download the Data Sheet

Glenn McPeak
Written 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.