What to Look for in an ERP-Friendly 3PL

Today’s supply chains are complex, involving a wide array of processes, including warehousing, transportation, the exchange of data, and seamless communications…to name a few! For this reason, many companies turn to 3PLs to manage their warehousing and logistics.

Central to these successful partnerships is the client’s enterprise resource planning (ERP) system. An ERP-friendly 3PL connects seamlessly with the customers’ systems to improve visibility, automate workflows, reduce manual entry, and synchronize data across the supply chain.

But not all 3PLs understand this, making it essential to find a partner 3PL that can enhance ERP efficiency, creating a unified network for inventory, fulfillment, and reporting. With an ERP-friendly 3PL, brands can expect an optimized supply chain and streamlined operations.

Why ERP integration matters in logistics

All ERP systems play the role of central coordinator, connecting finance, operations, and the supply chain. When a brand maximizes an ERP’s value, it can expect to efficiently plan and execute all its logistics resources and processes. An ERP system accomplishes this by automating the flow of material, information, and financial resources in a common database.

With demand growing for end-to-end visibility and automation, so too does the demand for ERP integration, and for good reason. With integration in place, ERP automatically transfers data and eliminates the costly mistakes that can accompany manual transfer. ERP serves to connect a brand’s internal operations with its 3PL partners and eliminates silos; each step of the supply chain is aware of, and working with, the others in a seamless manner.

Defining an ERP-friendly 3PL

What then, is an ERP-friendly 3PL? When a brand integrates its ERP with its 3PL partner, they receive enhanced visibility and transparency into all operations. The partners’ software systems are in sync and compatible. The 3PL partner accomplishes this through the use of native connectors, application programming interfaces (API), and/or electronic data interchange (EDI) to integrate, placing digital information into a single standardized format. This reduces the odds of human-caused errors.

For customers, working with an ERP-friendly 3PL partner provides multiple benefits. These include real-time order and inventory updates; fewer manual touchpoints; and faster, more accurate data exchange. In the end, customers can expect insights that lead to improved decision-making processes.

Core capabilities to look for in an ERP-compatible 3PL

To ensure a smooth experience with an ERP-friendly 3PL, look for specific capabilities. This includes a proven track record integrating with the major ERP platforms, like SAP, Oracle, NetSuite, and Microsoft Dynamics. An ERP-compatible 3PL will also include a dedicated IT department and provide onboarding support from start to finish.

Other ERP-friendly features include secure data sharing and compliance standards. Additionally, it’s important that a 3PL partner uses configurable warehouse management systems (WMS) and transportation management systems (TMS) that are designed for interoperability. Because no operations remain static, keep the future in mind, too. A good 3PL partner will be capable of adapting to ERP version updates and system changes as time goes on.

When evaluating ERP-friendly 3PLs, look for partners that offer:

Collaborative onboarding: Clear integration roadmap with timelines, stakeholder alignment, and continuous feedback loops.
Proven ERP integrations: Demonstrated experience connecting with platforms like SAP, Oracle, NetSuite, and Microsoft Dynamics.
Dedicated IT support: In-house technical teams that manage implementation, testing, and ongoing maintenance.
Data security and compliance: SOC 2, ISO, or similar certifications ensuring data integrity, cybersecurity, and regulatory adherence.
Configurable WMS/TMS: Systems built for flexibility and designed to exchange information seamlessly with ERP software.
Scalability: Ability to support additional nodes, facilities, or brands as your operations expand.
Future-readiness: Capacity to adapt to new ERP releases, AI automation, and API-driven data orchestration.

Operational impact of ERP integration

Once integrated, an ERP will ideally provide enhanced collaboration between the warehouse, finance department, and operations. This leads to better collaboration among teams, eliminating a siloed approach to operations. Improvements will include efficient, streamlined order processing, thanks to improved fulfillment accuracy and order tracking. When it comes time for invoicing and payment, a robust ERP integration will automate invoice reconciliation, minimizing the risk of errors and delays. Customers are happier and more loyal as a result.

The future of ERP-driven logistics

While ERP-friendly 3PLs are fully equipped for today’s processes and integrations, the world of logistics and supply chain changes quickly and constantly. Looking toward the future, expect ERP-3PL integration to include AI-driven predictive analytics. This will better allow customers to anticipate demand fluctuations and supply chain disruptions. AI algorithms will further optimize operations, leading to reduced costs.

Other features to expect from ERP-friendly 3PLs in the future include the growth of real-time data orchestration through APIs and automation. Sensors and connected devices will provide continuous data streams. Customers will have real-time insights on shipments, allowing for proactive decision making and the ability to pivot when necessary.

Heading into the future, expect ERP-friendly 3PL partnerships to be the standard, providing the operational agility necessary for a dynamic supply chain.

WSI: An ERP-friendly 3PL

WSI has a long history of providing and perfecting ERP-connected logistics. This means WSI has deep integration experience with multiple ERP platforms, ensuring it can work with any customer’s system. The company provides collaborative onboarding and implementation planning, ensuring integration goes smoothly from beginning to end.

WSI doesn’t stop at integration, however. Once integration is complete, WSI provides ongoing monitoring, ensuring data accuracy and performance. As a brand grows, WSI is there with scalable systems, well suited to multi-node and multi-client networks.

Integrating ERP with a 3PL is a key strategic move to streamline operations today and tomorrow. Ready to embrace ERP-friendly logistics? Reach out to a WSI expert for more information.

Frequently Asked Questions About ERP-Friendly 3PLs

What does it mean for a 3PL to be ERP-friendly?
An ERP-friendly 3PL can integrate directly with your enterprise resource planning system to share data in real time. This eliminates manual entry, improves visibility across finance, operations, and fulfillment, and ensures that every part of the supply chain is working from the same information.

Why is ERP integration important for logistics operations?
ERP integration streamlines communication between systems, creating faster, more accurate order processing and inventory tracking. It helps prevent costly data discrepancies, improves forecasting, and gives leadership better control over planning and performance.

What’s the difference between API and EDI connections?
Both enable systems to “talk” to each other, but they do it differently. EDI (Electronic Data Interchange) is a structured, standardized format often used in traditional supply chain systems. APIs (Application Programming Interfaces) are more flexible, allowing real-time data exchange and easier customization as technology evolves.

How long does ERP-3PL integration usually take?
Timelines vary depending on system complexity and data volume, but with an experienced 3PL and a clear implementation plan, most integrations can be completed in a matter of weeks, not months. A collaborative onboarding process is key to avoiding downtime.

Can a 3PL integrate with multiple ERPs or business systems?
Yes. Many brands use multiple platforms; like ERP, OMS, and CRM systems. A capable 3PL should be able to integrate across them all using a mix of APIs, middleware, and custom connectors to maintain data consistency.

What should brands ask before starting an ERP integration project?
Ask about prior experience with your ERP platform, data security protocols, integration testing processes, and post-go-live support. These questions help ensure your 3PL partner is equipped to deliver a smooth, secure integration from day one.

About the Author

Amanda Loudin

Amanda Loudin is a Maryland-based freelance writer with a wide range of coverage in both the B2B and B2C arenas. Areas of focus include supply chain management/logistics, health and science, travel, and everything in between. Amanda enjoys digging into research and data to support her content development, and welcomes the opportunity to add engaging, narrative spin where appropriate. Her work includes traditional feature articles, blog posts, white papers, branded content, and executive ghostwriting.