3PL Integration

What does Electronic Data Interchange (EDI) mean for 3PL companies?

  • April 10, 2019 / by Infocon Systems

A 3PL (third-party logistics) provider offers third-party (or outsourced) logistics services for a partial or complete function of their supply chain management. Most successful 3PLs use EDI (electronic data interchange), which is the structured transmission of electronic documents between them and the supplier/s.

Benefits of EDI for 3PL:

EDI significantly increases efficiency and accuracy for the supplier and a 3PL warehouse. It reduces costs, improves operational performance, increases accuracy and speeds up order fulfilment processing. With the help of EDI, 3PL providers handle many more shipments, offer better customer service and effectively manage inventory, packing and shipping processes. It also saves time by automating communications with 3PL warehouses.

Common 3PL Warehouse EDI Business Documents:

EDI 940 Warehouse Shipping Order: This transaction set is used to instruct remote warehouses to make a shipment. It is also used to make a shipment, confirm a shipment, modify a shipment or previous shipping order. Specific information provided in this warehouse shipping order includes manufacturer, shipping method, item quantities, number, ship and bill information

EDI 943 Warehouse Stock Transfer Shipment Advice: This document type is used to advise the recipient on a specific transfer shipment that has occurred. EDI 943 provides a receiving location with detailed information regarding the concerning product being shipped to the same. This usually includes shipment date, goods manufacturer, warehouse details, transportation & items information

944 Warehouse Stock Transfer Receipt Advice: This transaction set can be used by a receiving location to inform manufacturers that a transfer shipment has been received. This document also provides detailed information concerning the product that has been received. It also makes the information available to the depositor or the agent of depositor concerning product that has been received

EDI 945 Warehouse Shipping Advice: The EDI 945 transaction set is used by a 3PL warehouse to notify a supplier that a shipment has been sent. Information on the Warehouse Shipping Advice transaction usually includes the supplier information, date shipment was made, transportation information and ship-from & ship-to information

947 Warehouse Inventory Adjustment Advice: The EDI 947 transaction set is used to inform a warehouse/depositor of quantity or status change in inventory record. This transaction set also provides detail information about warehouse’s internal adjustments which occurs between a warehouse and a depositor

997 Functional Acknowledgement: The Functional Acknowledgment specifically used in an EDI environment, tells the sender that document has arrived and was processed by the recipient

To know more on how we implement EDI for 3PL companies and integrate into any of their internal systems, contact our sales department at +1 888-339-0722 or email us at sales@infoconn.com

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