EDI and 3PL integration: How it works and common challenges

As more brands outsource warehousing and fulfillment, the relationship between EDI providers and third-party logistics companies (3PLs) has become essential to daily operations. When this partnership works well, orders move smoothly from retailer to warehouse to shipment. When it doesn’t, delays, chargebacks, and inventory issues can follow quickly.

Understanding how EDI and 3PLs work together helps operations teams avoid common friction points and keep fulfillment running reliably.

How EDI and 3PLs work together

In a typical retail workflow, EDI acts as the communication layer between retailers, brands, and logistics partners.

A simplified flow:

1. A retailer sends a purchase order (EDI 850).
2. The EDI platform translates and routes the order to the warehouse or 3PL.
3. The 3PL picks, packs, and ships the order.
4. Shipment confirmations (EDI 856) and invoices (EDI 810) are sent back to the retailer.

If you’re new to these documents, you can read more about the basics here.

In this model, the EDI provider ensures compliance, while the 3PL manages physical fulfillment. Both sides depend on clear communication to keep orders moving.

Common challenges in EDI and 3PL workflows

Even when systems are connected, a few issues come up frequently.

Data mismatches between systems

SKU formats, units of measure, or carton details must match across systems. Small discrepancies often lead to rejected orders or manual corrections.

Limited visibility into order status

Brands sometimes struggle to see where an order is in the process. Without reporting or dashboards, troubleshooting becomes slower.

Retailer compliance risks

Retailers have strict requirements for labeling, ASNs, and shipping timelines. If requirements are unclear or misunderstood, shipments may result in chargebacks.

Onboarding new retailers or warehouses

Adding a new trading partner often requires coordination between the brand, the 3PL, and the EDI provider. Testing and mapping take longer when responsibilities are not clearly defined.

What strong EDI and 3PL partnerships look like

When the partnership is working well:

• Orders flow automatically with minimal manual handling
• Retailer requirements are clearly documented
• Brands have visibility into order and shipment status
• Issues are resolved quickly
• Onboarding new partners becomes faster over time

The best results usually come when the EDI provider and 3PL communicate directly during onboarding and troubleshooting, rather than relying on the brand to relay technical details.

Final thoughts

EDI and 3PLs play different roles but are tightly connected. One manages the movement of data, the other manages the movement of goods. When those systems are aligned, fulfillment becomes predictable, scalable, and easier to manage as order volume grows. 

If you’re evaluating how your EDI setup works with your warehouse or 3PL, our team is happy to help you take a closer look. 

FAQ: EDI and 3PL integrations

Does a 3PL replace the need for EDI?


No. A 3PL handles warehousing and shipping, while EDI ensures orders, shipment notices, and invoices are transmitted in retailer-compliant formats.

Can any 3PL work with EDI?


Most can, but experience levels vary. Some warehouses are highly familiar with retail requirements, while others may need more guidance during onboarding.

What causes most EDI and 3PL issues?


Data mismatches, unclear retailer requirements, and limited visibility into order status are the most common causes.

How long does onboarding a 3PL to EDI take?


Timelines vary, but clear documentation, testing, and communication usually shorten the process.

What should I look for in an EDI provider if I use a 3PL?


Look for providers that support direct coordination with warehouses, offer visibility into order flow, and help manage retailer compliance requirements.