3PL EDI integration connects your ERP, suppliers, customers, and third-party logistics provider through automated document exchange. Documents such as transfer advice, transfer receipts, shipping orders, shipping advice, ASNs, and invoices help keep inventory, fulfilment, and customer communication aligned.
Whether your warehouse is located across the country or in another country entirely, 3PL EDI integration helps ensure goods, inventory data, and shipping information move efficiently between all parties involved.
What is 3PL EDI integration?
A 3PL EDI integration automates document exchange between your business, suppliers, customers, ERP system, and third-party logistics provider.
Instead of manually sharing information through emails, spreadsheets, and PDFs, documents are exchanged electronically via EDI, helping ensure inventory and fulfilment processes stay aligned across multiple locations.
Why do businesses use 3PL warehouses?
Businesses often use 3PL providers when they need to store goods closer to customers, expand into new markets, or avoid managing warehouse operations themselves.
For example, a company may have its office in one country while using a warehouse in another country to improve delivery times and customer service.
How does a 3PL EDI document flow work?
The flow below illustrates how documents move between suppliers, your business, the warehouse, and your customers.
Step 1: Purchase Order Sent to Supplier
The process begins when your business sends a purchase order (PO) to a supplier requesting goods.
Instead of shipping the goods directly to your office, the delivery address on the purchase order is often the 3PL warehouse.
Step 2: Supplier Sends an Order Acknowledgement
The supplier sends an Order ACK confirming they can fulfil the order and deliver the requested products.
This acknowledgement provides confirmation before goods are shipped.
Step 3: Transfer Advice Sent to the 3PL
After receiving the order acknowledgement, your business sends a transfer advice to the warehouse.
This document informs the 3PL that goods are on their way, allowing the warehouse to prepare receiving capacity and storage space.
Step 4: Goods Arrive at the Warehouse
When the goods arrive, the 3PL scans and receives them into inventory.
A transfer receipt is then sent back to your ERP system, confirming the products are available in the warehouse.
Step 5: Customer Places an Order
Once inventory is available, customers can place orders through your normal sales channels.
The order is received by your ERP system and prepared for fulfilment.
Step 6: Shipping Order Sent to the 3PL
The customer order is converted into a shipping order and sent directly to the warehouse.
This document tells the 3PL which products should be picked, packed, and shipped.
Step 7: Shipping Advice Sent Back
Once the warehouse has processed the order, it sends a shipping advice confirming the goods are prepared for shipment.
This information can be used to update your ERP system and customer communications.
Step 8: Customer Receives Shipping Information
Using information from the warehouse, your business can send:
- Order Acknowledgements
- Advanced Shipping Notices (ASNs)
- Invoices
Some 3PL providers can also send shipment updates directly to customers.
Which documents are used in a 3PL EDI integration?
| Document |
Purpose |
| Purchase Order (PO) |
Order goods from a supplier |
| Order ACK |
Confirm the supplier can fulfill the order |
| Transfer Advice |
Notify the warehouse about incoming goods |
| Transfer Receipt |
Confirm goods have been received |
| Shipping Order |
Tell the warehouse what to ship |
| Shipping Advice |
Confirm goods have been picked and prepared |
| ASN |
Notify customers that goods are on the way |
| Invoice |
Complete the commercial transaction |
What challenges do businesses face with 3PL processes?
Many businesses already understand these warehouse processes but still manage them manually.
Common challenges include:
- Limited visibility into stock held at external warehouses
- Manually checking shipping orders and transfer advice documents
- Retyping transfer receipts and shipping advice into ERP systems
- Exchanging PDFs between warehouses and business systems
- Spreadsheet-based inventory tracking across multiple warehouse locations
- Manual inventory and sales reporting processes
- Additional complexity when warehouses are located away from the main office
As businesses grow, these manual processes often become increasingly time-consuming.
How does EDI help automate 3PL processes?
EDI helps automate document exchange between your ERP system, suppliers, 3PL providers, and customers.
Instead of manually entering data or sharing PDFs, 3PL EDI integration exchanges documents automatically, improving data accuracy and reducing administrative workload.
This allows businesses to:
- Improve inventory visibility
- Reduce manual data entry
- Speed up warehouse communication
- Automate fulfilment processes
- Keep customers informed throughout the delivery process
Key Takeaways:
- A 3PL warehouse stores and ships goods on behalf of your business.
- Automated document exchange helps keep suppliers, warehouses, and customers connected.
- Common 3PL documents include transfer advice, transfer receipts, shipping orders, shipping advice, ASNs, and invoices.
- EDI integration reduces manual processes such as retyping data, exchanging PDFs, and maintaining spreadsheets.
- Inventory visibility improves when warehouse updates are automatically shared with your ERP.
- 3PL EDI integration connects directly to ERP systems including SAP, NetSuite, and Microsoft Dynamics, so documents flow automatically without manual re-entry.
Frequently Asked Questions
What is 3PL EDI integration?
3PL EDI integration automates the exchange of documents between your ERP, third-party logistics providers, suppliers, and customers. Instead of manually sharing transfer advice, shipping orders, ASNs, and invoices through emails and PDFs, EDI sends these documents between systems automatically.
What is a 3PL warehouse?
A 3PL warehouse is a third-party logistics provider that stores, manages, and ships inventory on behalf of another business.
What is a transfer advice?
A transfer advice notifies a warehouse that goods are being shipped to its location and should be expected.
What is a transfer receipt?
A transfer receipt confirms that goods have arrived and been received into the warehouse.
What is a shipping order?
A shipping order tells the warehouse which products should be picked, packed, and shipped to a customer.
What is a shipping advice?
A shipping advice confirms that an order has been processed and is ready for shipment.
Can a 3PL send ASNs to customers?
Yes. Depending on the setup, ASNs can be sent by your business or directly by the 3PL provider.
How does EDI improve inventory visibility?
EDI allows warehouse updates, inventory reports, and stock movements to be shared automatically with your ERP system, helping maintain accurate inventory information.
Is 3PL integration only for large businesses?
No. Many growing businesses use 3PL providers to store products closer to customers and improve fulfilment without operating their own warehouse network.
How does 3PL EDI integration connect to an ERP system?
3PL EDI integration connects directly to ERP systems including SAP, NetSuite, Microsoft Dynamics, and Acumatica. Documents such as transfer receipts, shipping advice, and inventory updates flow automatically into the ERP without manual re-entry.