Let’s talk EDI and 3PL

Business owners sometimes don’t see themselves as part of supply-chain. In business and finance, the supply chain is defined as:

“a system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer.”

When my clients who manufacture product start their Business Central journey we like to talk to them about EDI and 3PL and instantly we get a ‘blink blink’ blank stares back at our team.

EDI is an interface between companies while 3PL enables you to outsource the management of your warehousing and dispatch.

Let’s break this down today to understand these systems and how they benefit even small distributors and manufacturers.

Introduction to EDI and 3PL

This means electronic data interchange (EDI) and third-party logistics (3PL) to further streamline your business. The idea of growing and scaling your interaction between your suppliers and distributors, while improving your warehousing.

You need to see EDI as a universal B2B language between business systems which you should encourage all major suppliers and distribution channels to utilise.

3PL is a benefit when you realise your core business is not warehousing but manufacturing of the product. a 3rd Party can take dispatch from your manufacturing line and store and manage the distribution of your product to your supply chain.

EDI integration

You should think about the volume of invoices you have to enter from your suppliers. Some of my clients have thousands of invoices a month, the cost of this is the labour of your administrative teams.

Setting up EDI interfaces just saves time and hassle while bringing more features to the table, is the integration of:

  • invoices
  • purchase orders
  • acknowledging purchase orders
  • shipping manifests
  • inventory documentation
  • supplier stock availability
  • stock delivery ETA’s
  • return authorisation processing
  • and more.

Turning on the EDI feature into your ERP solution reduces human error and saves time and money when exchanging large amounts of data while improving your supplier integration, and you are not limited to any one supplier.

3PL integration

Have you ever run out of storage space for a product? It is a simple issue but many of my clients have this happen all the time.

3rd Party Logistics means they hold your stock, and on instruction will dispatch the stock for you back to your warehouse or to your customer.

To integrate your 3PL (third-party logistics) system into your ERP is to create better value throughout your supply chain.

More and more businesses use third-party shippers so integrating 3PL into your ERP gives you better transparency as all systems can communicate with each other while extending your warehouse space and creating more of an endless capacity.

This benefits you with security of stock, inventory tracking, order fulfilment and shipping information to be in sync throughout the whole supply chain. It cuts down on double handling information and automates daily tasks such as automatically fulfil eCommerce and warehouse orders. This reduces the workload and ultimately saves you money. One major benefit is you build on your reputation for delivering on time every time.

Rightsize is your Partner

Rightsize is a Microsoft partner and can give you all the information you need to make the right decision for your business. Moving to an ERP such as Business Central is a wise decision. Simple to use. Simple to implement and Rightsize can even simplify the process further.

Want to find out more about ERP and Business Central for your business? Contact us now for a free consultation or call 1300 305 009 to find out how ERP can enhance your business operations.

About Rightsize

Enabling your business to grow efficiently and effectively – we’re the Rightsize for you.

Small businesses struggle to budget their IT operations and often spend inefficiently with less than a great return on their investment. Rightsize Technology understand. We deliver a minimum 30% reduction on IT overheads as a dedicated outside IT department for our clients. Our unlimited 24×7 support, both on and offsite increases business productivity and capacity, enabling their business to grow efficiently and effectively – we’re the Rightsize for growing small businesses. Talk to our team today for more information.