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Growing Pains: How EDI for 3PL helps businesses scale without losing control
Managing growth is one of the biggest challenges for small but rapidly expanding businesses. In this post, we introduce Rhea, the founder of Gilded Glow, as an imaginary example of a typical business owner facing these struggles.
Her luxury lampshade brand is thriving, with an expanding network of retail clients and a booming eCommerce store. But as her orders grow, so do her logistical headaches.
Rhea’s story highlights the challenges many businesses encounter during a period of rapid growth – rising costs, operational bottlenecks, and the pressure to maintain high levels of service.
By exploring how Rhea transformed her operations with EDI for 3PL, we’ll show how businesses like yours can overcome these growing pains and scale with confidence.
The growing pains of success
As Gilded Glow expanded, Rhea faced a series of hurdles common to businesses transitioning to the next level:
Order processing bottlenecks:
With more orders coming in, manually processing and fulfilling them became time-consuming and error-prone.Rising warehousing costs:
Managing stock in-house meant higher rent, utilities, and staffing expenses, which were cutting into her margins.Customer expectations:
Luxury customers expect perfection – next-day delivery, real-time updates, and flawless orders. Meeting these standards while keeping up with retail client demands was a constant challenge.
The breaking point came when a prestigious new retail client made it mandatory for Rhea to use Electronic Data Interchange (EDI) for orders, invoices, and Advance Shipping Notices (ASNs). Without EDI, Rhea couldn’t meet their requirements, putting this vital partnership at risk.
It became clear that she needed a new approach.
The turning point: Partnering with a 3PL and implementing EDI
Rhea decided to outsource her logistics to a third-party logistics (3PL) provider and integrate EDI into her operations. This decision transformed how Gilded Glow handled both retail and eCommerce orders.
With a 3PL managing her warehousing, stock, and shipping, and EDI ensuring seamless communication between her systems, her logistics became a well-oiled machine.
Here’s how it worked:
For major retail clients:
Automated order processing:
Retailers’ purchase orders were automatically sent to her 3PL, eliminating the need for manual input.Advance shipping notices (ASNs):
Once the 3PL prepared an order, an ASN was sent to the retailer, providing transparency and tracking details.Invoice automation:
After fulfilment, invoices were sent via EDI, ensuring timely payments and reducing administrative work.
This allowed Rhea to meet her retail clients’ strict requirements, avoid errors, and maintain strong partnerships with her network of buyers.
For eCommerce customers:
Real-time order fulfilment:
When a customer placed an order online, the details were instantly sent to the 3PL, which began processing right away.Dynamic inventory updates:
Her website was always synced with the 3PL’s stock levels, preventing overselling or stockouts.Shipping notifications:
Once the order shipped, customers received automated tracking updates, enhancing their experience.
For her eCommerce customers, this meant faster delivery, accurate orders, and reliable service that reflected the premium nature of her brand.
The benefits of EDI for 3PL integration
By integrating EDI with her 3PL provider, Rhea solved many of the challenges that had been keeping her up at night. These included:
Faster processing:
Manual workflows that used to take days were automated, drastically reducing delays.Improved accuracy:
Errors in order processing and documentation became a thing of the past.Cost savings: Outsourcing logistics eliminated in-house warehousing costs, freeing up cash flow for other priorities.
Retail compliance:
EDI ensured that Rhea could meet operational requirements effortlessly.Customer satisfaction:
With faster shipping and real-time updates, both her retailers and eCommerce customers were delighted with the improved service.
Finding balance and building the future
For Rhea, the shift to a 3PL and EDI wasn’t just about keeping up with demand – it was about reclaiming control. With logistics running smoothly in the background, she could focus on growing Gilded Glow.
She had time to design new collections, strengthen relationships with her retailers, and expand her eCommerce presence without worrying about the day-to-day headaches of order fulfilment. Her team, once overwhelmed and overworked, could now focus on their core strengths.
How Transalis can help businesses like yours
For businesses like Gilded Glow, Transalis offers a simple, effective EDI solution that connects seamlessly with 3PL providers. With fast implementation and user-friendly systems, Transalis makes it easy to automate processes, reduce costs, and meet the demands of both retailers and customers.
You can read a real-life example of how Transalis helped a world leading sports manufacturer successfully implement 3PL into their business.
Get in touch
If your business is experiencing similar growing pains, Transalis can help you transition to the next level. Contact us today to discover how EDI for 3PL can transform your operations, simplify logistics, and help you focus on building your business.
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