ERP Software – The Only Solution for Third-party Logistics Data Issues

ERP Software

ERP Software – The Only Solution for Third-party Logistics Data Issues

ERP Software – The Only Solution for Third-party Logistics Data Issues 1280 720 Visvendra Singh Visvendra Singh

A Right ERP Software can help overcome challenges related to third-party logistics data issues. To help you understand better, this blog covers insights that will help you manage your logistics data in a better way.

ERP Software

The 3PL or Third Party Logistics is a common phenomenon in today’s business environment. With e-commerce businesses growing and logistics becoming center stage, the use of 3PL can help in distribution, fulfillment, and warehousing services in a great manner. Be it a business of any scale, management of these aspects is critical in meeting the e-commerce demands of B2B, B2C, or B2B2C. While third-party logistics can be a great way to meet the goals of businesses in many ways, it can also become a challenge for some due to the constraints in accessing the data to track the whole process. 

ERP software can provide a complete view of all 3PL operations, from warehousing and transportation to invoicing and customer service. ERP is a solution that can help 3PLs to streamline their operations, improve their customer service, and increase their profitability.

What is Third Party Logistics?

Third-party logistics (3PL) is the process of outsourcing the management and execution of certain supply chain-related activities. This outsourcing is done to a specialized service provider. While this can offer businesses many benefits, such as increased efficiency and cost savings, it can also present some challenges. These challenges include coordinating communication and managing expectations between the various parties involved. Here, ERP software can help in managing all the activities related to warehousing and logistics.

What Can be The Challenges Related to Third Party Logistics Data?

  • Collection & Trackability: It is first important to consider the aspects on which the logistics provider offers the data. It is also crucial to understand whether the logistics provider is collecting the data points or not.
  • Data Compromise: When companies outsource their logistics operations to third-party providers, they are entrusting sensitive customer information to those providers. If a third-party logistics provider suffers a data breach, it could compromise customer information.
  • API integration issues: It can be a common aspect that logistics providers might not have API support. This support can extend the information or data points to the internal ERP system for the organization
  • Delayed Information or Incorrect Updates: Another challenge related to third-party logistics data is the potential for inaccurate or incomplete data. If a third-party logistics provider does not have accurate and up-to-date information, it could lead to delays or other problems with the logistics operations.
  •  Difficulty in Management in the Right Manner: The data can include information on shipments, invoices, and other details that need to be monitored. Without proper management, this data can quickly become overwhelming and lead to problems.

How ERP Can Help in Overcoming Third-Party Logistics Issues

Here are some of the ways why ERP is the only solution for third-party logistics data issues:

  • Visibility of Entire System: ERP systems can provide visibility into the entire supply chain, from raw materials to finished products. This visibility can help managers identify bottlenecks and inefficiencies in the system. This can give an in-depth view of the complete logistics or supply process.
  • Enables Automation: ERP systems can automate many of the tasks involved in logistics management, such as order processing, inventory management, and shipping. This automation can free up time for managers to focus on other tasks.
  • Drive Important Insights: An ERP system can help logistics managers track and analyze data related to shipments and warehouse operations. Companies can use this data to improve efficiency and optimize resources. For example, the data can be used to identify shipping bottlenecks and delays and to develop plans to address these issues. 
  • Better Governance: Through end-to-end tracking of logistics, the company can have better governance of the logistics process. This gives them better control over their data and processes without any critical red flags. 
  • ERP Systems are Configurable: ERP systems are highly configurable, meaning that they can be tailored to the specific needs of a business. This is important as each business has different logistics requirements. An ERP system configured to meet these specific needs will be much more effective than a generic system.
  • ERP Comes with Features:  ERP systems come with a range of built-in features that are essential for effective logistics management. These features include order tracking, warehouse management, and transportation management.


The ERP solution can be a boon for overcoming challenges related to third-party logistics data issues. From tracking your warehouse to monitoring the entire logistics process, ERP software can deliver a lot of good returns, efficiency, and productivity to your business. If you integrate a good ERP solution, it can help you grow your business while keeping the focus on activities in a streamlined manner.