How to Partner with 3PLs for Better Automating logistics workflows with ERP integration

As construction supply chains grow more complex, building material suppliers are increasingly turning to third-party logistics providers (3PLs) to scale delivery capacity, streamline operations, and reduce cost. At the same time, the rise of digital supply chain management has made ERP integration a critical part of automating logistics workflows.

But here’s the catch: working with a 3PL won’t automatically make you more efficient—unless your systems are connected.

To truly unlock efficiency and visibility, suppliers must partner with 3PLs through ERP-integrated workflows that eliminate manual steps, reduce delays, and provide real-time data. When done right, this collaboration enhances not just your internal operations—but also your service to contractors and job sites.

Here’s how to build a strong, ERP-integrated 3PL partnership that drives better logistics automation from end to end.

Why ERP Integration Matters in 3PL Partnerships

When 3PLs and suppliers operate on disconnected systems, problems arise:

Delayed shipment updates

Manual entry of orders and tracking numbers

Miscommunication about delivery timelines

Limited visibility for customer service or sales teams

With ERP integration, your systems and your 3PL’s transportation management system (TMS) work together—automating key logistics workflows like order processing, dispatch, shipment tracking, and invoicing.

Benefits of ERP-Integrated Logistics Automation with 3PLs

✅ Faster order-to-ship cycle times

✅ Reduced manual entry and errors

✅ Real-time tracking and status updates

✅ Improved inventory accuracy

✅ Streamlined billing and reconciliation

✅ Consistent data for better decision-making

How to Partner with 3PLs for ERP-Integrated Logistics Automation

Step 1: Choose a Tech-Ready 3PL

Not all 3PLs are created equal—especially when it comes to systems integration.

Look for 3PLs that offer:

API or EDI integration capabilities

Experience working with ERP systems like SAP, NetSuite, Microsoft Dynamics, or Acumatica

A cloud-based TMS with accessible documentation

Dedicated technical support for onboarding and maintenance

Tip: Ask for references or case studies where the 3PL has successfully integrated with ERP systems in construction or distribution.

Step 2: Map Shared Logistics Workflows

Before integrating systems, align on which logistics workflows you want to automate.

Examples include:

Sales order transmission to 3PL for fulfillment

Real-time shipment status updates back to your ERP

Proof of delivery (POD) and delivery confirmation uploads

Automatic invoice generation and reconciliation

Inventory level updates across multiple locations

Pro Tip: Prioritize high-impact workflows that are currently the most manual or error-prone.

Step 3: Establish a Data Integration Plan

Work with your ERP team and your 3PL’s IT team to define:

Data formats (JSON, XML, EDI)

Integration methods (API, SFTP, webhooks)

Frequency of data exchange (real-time vs. batch)

Data ownership, security, and validation rules

Key data points to align on:

SKU-level inventory

Order numbers and fulfillment status

Load tracking details

Warehouse receipts and dispatch timestamps

Step 4: Use Middleware or Integration Platforms If Needed

If your ERP and your 3PL’s systems aren’t directly compatible, consider using an integration platform (iPaaS) like Boomi, Celigo, or MuleSoft to manage data flow between them.

Why it helps:

Reduces custom coding

Speeds up deployment

Makes future integrations easier

Step 5: Automate Notifications and Exception Handling

With ERP integration, your system can send or receive real-time alerts when something goes wrong—such as a delayed shipment, inventory mismatch, or failed delivery attempt.

How to implement:

Set up automated triggers in your ERP

Allow dispatch and customer service to act quickly on exceptions

Notify contractors with delivery updates automatically

Step 6: Enable Two-Way Visibility for Contractors and Internal Teams

An integrated 3PL partnership doesn’t just benefit the warehouse—it also improves service at the job site.

How to extend visibility:

Connect tracking info from your ERP to contractor-facing portals or apps

Allow internal sales, customer service, and project managers to access real-time shipment status

Include POD and delivery photos in the ERP record

Step 7: Review and Optimize the Integration Over Time

Even the best integrations need regular evaluation.

Track these KPIs:

On-time delivery rate

Order-to-dispatch cycle time

ERP vs. TMS data sync accuracy

Return processing speed

Delivery exception rate

Meet regularly with your 3PL to review performance and improve workflows based on data.

Final Thoughts

Partnering with 3PLs is no longer just about outsourcing transportation—it’s about creating a tech-enabled logistics ecosystem. When your ERP and your 3PL’s systems are fully integrated, you gain speed, control, and visibility across the supply chain.

The suppliers that invest in ERP-integrated logistics automation won’t just move materials faster—they’ll deliver smarter, more transparently, and with greater confidence.