SAP Business One and 3PL Integration

Third-party logistics (3PL) is growing in popularity due to a range of factors. Perhaps the most important has been the boom in eCommerce. Another is the affordability and availability of these services. Where once they were the preserve of large corporations, 3PL providers are making their services more accessible to small and medium-sized businesses.

If you are wondering if it is worthwhile integrating ERP such as SAP Business One and your chosen 3PL, take a look at our blog entitled Shopify and SAP Business One.

This article digs deeper to help you understand how we integrate SAP Business One and 3PL.

Step 1. Determine Integration Requirements

Define which processes you need to synchronise between SAP Business One and the 3PL provider. Common areas include:

• Inventory updates
• Order fulfilment
• Shipment tracking
• Invoicing and billing

Determine the data points for integration (e.g. inventory levels, order statuses, shipping details, etc.).

Step 2. Select an Integration Method

Custom Integration Using APIs

Most 3PL providers offer APIs (Application Programming Interfaces) that facilitate real-time data exchange between systems. LAKE Integrations leverage out of the box functionality and low code integration tools to deliver solutions that are robust, scalable, and easy to maintain.

EDI (Electronic Data Interchange) Integration

EDI is another form of custom integration and many 3PL providers support EDI for structured data exchanges. Though still widely used, EDI integrations exchange data in batches. APIs are more flexible, easier to scale, and exchange data in real-time.

Step 3. Configure Data Mapping

Data Field Mapping

Ensure that key fields from SAP Business One (e.g. product codes, order numbers, shipping details) map accurately to the corresponding fields in the 3PL system.

Master Data Alignment

Ensure that product SKUs, warehouse locations, and customer data are consistent across both systems to avoid errors in data synchronisation.

Step 4. Set Up Automation and Workflows

Automate Key Processes

Automation and integration go hand in hand as in the following examples:

• Automatic inventory updates from the 3PL to SAP Business One
• Order fulfilment requests sent to the 3PL upon order creation in SAP Business One
• Real-time shipment tracking information pushed back into SAP for customer service

Notifications and Alerts

Configure automatic notifications (for example, when stock levels drop below a threshold) and alerts for order status updates.

Step 5. Test the Integration

Test Data Flow

Before going live, perform thorough testing of data flow between SAP Business One and the 3PL system. Test scenarios include:

• Placing a test order in SAP Business One and confirming the order is received by the 3PL system
• Verifying inventory adjustments after an order is fulfilled
• Confirming financial records (e.g., billing, invoices) are accurate in both systems

Adjust Mapping or Configuration

Based on test results, adjust any data mappings or workflow configurations to fix issues.

Step 6. Monitor and Maintain Integration

Monitor Data Accuracy

Regularly monitor the integration for discrepancies in data synchronisation, such as incorrect inventory counts or delays in order processing.

Update Integration as Needed

If your 3PL provider or SAP Business One undergoes upgrades or system changes, ensure the integration is updated to accommodate new features or formats.

An Example Use Case

If a customer places an order on your e-commerce site:

1. The order is automatically synced to SAP Business One.
2. SAP triggers a fulfilment request to the 3PL, which picks, packs, and ships the order.
3. The 3PL updates the order status and tracking information, which is then pushed back into SAP Business One and automatically shared with the customer.
4. Once the order is shipped, the system automatically updates inventory levels in SAP.

Take the next step

Integrating SAP Business One with a 3PL provider streamlines your logistics operations, improves efficiency, and provides real-time data synchronisation. Whether through custom API development, EDI, or pre-built connectors, effective integration enables automation, reduces manual effort, and enhances your ability to scale and meet customer demands efficiently.

To find out how SAP Business One from LAKE could help your business, download a copy of one of our Guides to SAP Business One or call now on 0113 273 7788.

by Fraser Dunlop

Blog updated 6th November 2024.