Using EDI to communicate with your outsourced Warehouse or Third Party Logistics Provider (3PL) can offer many advantages to organizations who further want to improve their supply chain efficiencies:
EDI, through its computer to computer technology, automates the entire business document (EDI transaction set flow). There is no need for human intervention and this can greatly reduce your labor costs.
- Error Reduction:
By not having to re-key data, this greatly reduces the potential for human error and can save your organization from costly chargebacks imposed by your trading partners for poor data.
Communicating through EDI with your 3PL allows you to scale easily for spikes in seasonal markets, e.g. Christmas as you do not have to employ extra staff to manually key or transmit the extra orders and billing.
By communicating electronically, your orders and dispatch can be dealt with more efficiently and much faster by your 3PL. This in turn helps your organization to get paid faster and reduce your ‘order to payment’ cycle.
A brief video on B2BGateway.Net’s EDI solutions for outsourced Warehouses and 3PL’s can be viewed here. If you would like further information on automating your supply chain with your 3PL or advice on how your organization can successfully introduce a 3PL into your business model, please visit us online at www.B2BGateway.Net, email Sales@B2BGateway.Net or call (401) 491-9595 x2100.