When you partner with a third-party logistics provider, you have to share information digitally if you want good results. You can connect their warehouse management system (WMS) with your ERP system so data flows seamlessly between both platforms.
Why You Need to Integrate with Your 3PL Provider
Without proper integration, you're stuck with manual data entry and limited visibility into your supply chain. Orders get delayed, inventory levels get murky, and customer service suffers. Integration solves these problems by creating real-time communication between your ERP platform and the 3PL's systems.
When systems work together, your ERP system can automatically send purchase orders and sales orders to the 3PL. In return, you receive instant updates when inventory arrives, orders ship, and products move through the warehouse. This two-way data exchange keeps everyone informed and operations running smoothly.
Two Main Integration Methods for 3PL and your ERP System
EDI (Electronic Data Interchange) uses standardized document formats that have been around since the 1970s. Companies like Ford and General Motors helped establish these standards. EDI works reliably but requires careful setup and ongoing maintenance costs.
API (Application Programming Interface) offers a modern approach with instant data exchange through the cloud. APIs are faster to implement and more affordable, but each system uses different formats. This means custom development work when you change ERP or 3PL providers.
Choosing Your ERP Integration Partner
Your ERP partner will work with you to design your integration method for your current or future 3PL provider.
They will help you identify what services your 3PL will provide and which data needs to flow between systems. This creates your project roadmap and helps set effective timelines.
Manufacturing companies, wholesale distributors, and eCommerce businesses all benefit from ERP-3PL integration. The investment pays off through faster order processing, better inventory control, and improved customer satisfaction.
At Stellar One, our expert team has decades of experience across dozens of ERP platforms, including 3PL integrations. To see our work in action, check out our partnership that transformed a client's operations and included a 3PL integration.
