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  • Writer's pictureJohn Hannan

Integrating your ERP Software with a 3rd Party Logistical (3PL) Firm

Are you utilizing a 3PL firm and looking to improve the performance and profitability of your business? If so, integrating your ERP software with your 3PL provider can be an excellent way to make it happen.


3PL experts offer comprehensive services such as inventory and shipment tracking, international order fulfillment, and customs clearance support -all tailored to your business needs. All of these things are trackable in most ERP systems, so why should the activities performed by the 3PL be segregated in another (their) system? They shouldn’t!


With real-time inventory visibility right inside your own ERP system, you'll better understand what products are in demand, which orders need to be prioritized for delivery, and which inventory needs restocking. This will improve service to your customers, provide valuable data for decision-making, and enable your workforce to leverage the full partnership with the 3PL.


Understanding What 3PL Is and Its Benefits

As a foundational topic, let’s first consider first why you decided to utilize a 3PL in the first place. Ultimately, this gives you an advantage over competitors and helps create a superior customer experience.


When you decided to entrust components of your supply chain management to a 3PL, you realized there are plenty of benefits to taking this route.


It can lower operational expenditures and improve delivery speeds through optimized route planning. Your clients benefit from quicker service and heightened responsiveness.

Moreover, this method of outsourcing affords you more adaptability, making it easier for your company to scale up or down according to fluctuating needs.


By taking advantage of the advanced systems the 3PL provides, you can significantly enhance inventory accuracy and leverage real-time data for making better business choices. The benefits of teaming up with a 3PL are plentiful.


How ERP Software Utilizes 3rd-Party Logistics

Integrating your ERP software with a 3rd-party logistics (3PL) provider can significantly benefit your business. Through a 3PL, you'll access a wide range of strategies and resources – including warehousing, transportation, inventory management, and more – for improving operations.


ERP software offers a number of features to help you take advantage of these 3PL services. Here's how:


Automated Inventory Management

ERP software can automate the tracking and management of inventory held by your 3PL partner, providing rich real-time visibility into the inventory status. This helps you more effectively manage stock levels across multiple locations while reducing manual intervention requirements, without going into another system or relying on reports provided by the 3PL.


The ERP solution also enables you to gain improved analytics capabilities, allowing you to gain complete visibility into stock movements and provide accurate historical data for analysis.


Improved Warehouse Fulfillment Processes

ERP solutions can integrate with 3PL systems to help streamline warehouse processes such as shipping, receiving, and picking – reducing errors associated with manual entry and eliminating bottlenecks due to disparate systems. These improvements allow your team to work more efficiently to fulfill orders, increasing customer satisfaction and lowering operational costs.


Real-time Visibility Into Delivery Status

Integrating an ERP system with a 3PL provider ensures greater visibility into the delivery status from start to finish. This complete view allows you to monitor shipments in real-time to keep customers up-to-date on order fulfillment status and any potential delays, providing greater transparency throughout the process.


Solutions for Successfully Integrating an ERP Software with a 3rd Party Logistical (3PL) Firm

Integrating your ERP system with a 3PL can help your business run smoothly and more efficiently. Here are some strategies to keep in mind:


• Compatibility

• Establish communication protocols

• Focus on scalability

• Review existing processes

• Utilize automation

• Monitor performance


By following these steps, you can maximize efficiency and ensure that the integration of your ERP system with a 3PL runs smoothly, improving operational performance and profitability in the long run.


Parting Shot

Integrating ERP software with a 3PL firm can significantly improve the efficiency and accuracy of your supply chain operations. It gives you unprecedented visibility and control into your inventory and order fulfillment, enabling you to make real-time stocking and delivery decisions while ensuring customer satisfaction.


By partnering with an experienced 3PL provider, you can leverage their extensive knowledge and resources to deploy a seamless ERP integration strategy that caters to your business needs. If you have any questions on Integrating your ERP Software with a 3rd Party Logistical (3PL) Firm, leave them in the comments section below.

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