3PL Module for SAP Business One
Today, EDI is no longer limited to processing commercial data from one business to another, commonly known as B2B. Now it can also be used to order goods from your supplier and ship them to a customer through a 3PL when you do not even have a warehouse to store your products. The new model is a web relationship of B2B2B.
What is a 3PL?
A 3PL (3rd Party Logistics) is a logistics service provider specialized in the storage and transport of products and materials fot its customers.
These steps are done manually and therefore generate errors. Since your ERP does not communicate with your 3PL warehouse management system (WMS), your inventory does not reflect that of your 3PL.
The 3PL Module for SAP Business One allows the automatic exchange of EDI 940, EDI 945 and EDI 944 documents between companies running SAP Business One and their 3PL service provider. This set of documents allows companies running SAP Business One to easily exchange sales order, shipping and product transfer details with their 3PL partners.
How the 3PL Module for SAP Business One Works
As a client, you receive an order via a store. You generate a 940, a Warehouse Shipping Order transaction, for the 500 units ordered and send it to your 3PL. The 3PL receives this transaction which contains all the instructions necessary to send the complete order to the store.
Upon reception of goods, your 3PL replies to you with a 945, a Warehouse Shipping Advice transactions, to inform you that it has received your 500 units and that they will be shipped to the store, The transaction is inputted seamlessly into SAP Business One and automatically your inventory is adjusted.
When you need to restock with product from your supplier, you send a PO for 3000 units. Once the merchandise arrives at your 3PL’s warehouse, they send you a 944, a Warehouse Stock Transfer Advice transaction, to confirm that the goods have arrived at their warehouse. Your inventory increases by 3000 units and it is automatically adjusted in SAP Business One. Both inventories balance.
The 3PL Module offers numerous advantages:
Improved supply chain efficiency
a. Optimizes supply chain infrastructure to realize maximal cost savings
b. Sharply reduces order processing costs on both ends (Client and 3PL)
c. Improves transparency between clients and 3PL
d. Fosters better inventory control and stock shrinkage control
Improved order fulfillment time
a. Improves order processing and dispatching
b. Accelerates responsiveness
Improved supply chain delivery reliability
a. Improves client satisfaction: right product, at the right place and time to the customer
b. Reduces shipping errors and the logistics costs resulting from those errors