Differences between a distribution WMS and a 3PL WMS

Posted by Melroy Coelho on Oct 24, 2016 7:00:00 AM
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 Distribution based WMS 

  1. Single client - One inventory owner
  2. Single set of process flows and requirements 
  3. Simple labeling 
  4. Order Entry gets handed to the ERP solution. Order entry is integrated through the ERP solution
  5. Basic warehouse management system cannot accomodate different ERP version releases from different customers without extensive and costly custom fixes and workarounds

3PL Specific WMS 

  1. Multiple Clients - multiple inventory owners
  2. Concurrent support for business processes of each inventory owner
  3. Complex labeling requirements
  4.  Order Entry is self contained in the 3PL solution
  5. 3PL logistics software needs to accomodate different ERP version releases,distinguishing and accomodating the various versions automatically

Here are some questions to ask a potential WMS if you are looking for 3PL specific WMS Solution:

  1. How does your solution calculate and report deferred handling?
  2. How does your system manage transfer of ownership and title/internal transfers and transfers in storage?
  3. How does your system handle requests for shipping inventory for multiple end customers on one client order? 

Topics: 3PL

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