Stay Competitive at a Predictable Cost

For example, you need to find a 3PL that can answer “yes” when you ask the following question: “I am obligated to send certain documentation—an advance ship notice (ASN), carrier information or invoicing information—on my behalf to my retailers that are compliant. Can you help me meet the electronic requirements of all my retailer trading partners?” Many 3PLs might have the technical capability, but they certainly don’t have the time, experience or expertise to know all the unique requirements of every retailer.

By taking advantage of SaaS-based models for EDI, 3PLs can offer more services with greater speed, reliability and supply chain intelligence. They can also scale, and, certainly, it’s a much better financial option than having to hire additional staff or purchase unnecessary hardware and software to try to meet those needs.

Some 3PLs are adopting SaaS as a way of streamlining EDI, inventory and warehouse management processes, especially when it comes to inventory visibility across multiple warehouses or multiple clients in a single warehouse.

Value-added services are what differentiate 3PLs from transportation companies and basic warehousing operations. Today’s best-in-class material handling and logistics executives are looking to 3PLs as a value-added extension of their organizations that can help deliver value to their retail customers at a lower cost.

David Novak is executive vice president of business development at SPS Commerce, a provider of SaaS-based EDI systems.