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Third Party Logistics Integration(3PL)

With the below blog i would like to collate information about 3PL from business center, help center and some interesting SCN Blog/document on the same for easy understanding and consumption.

What is Third Party Logistics Integration(3PL) ?

With the Third party Logistics (3PL) integration functionality, it is possible to connect SAP Business ByDesign system to an external warehouse management system of a third-party logistics provider. SAP Business ByDesign is used for purchasing, sales, and fulfillment processes including invoicing, whereas warehouse execution and transport is outsourced. The 3PL provider (warehouse provider), takes responsibility for all topics concerning the execution process. Communication is done via B2B interfaces (following UN/EDIFACT standard)

The scenario supports outbound, inbound, and inventory change processes that are physically carried out by the warehouse provider.

The supported outbound processes are:

– Sell from Stock

– Return to Supplier

– Stock Transfers

The supported inbound processes are:

– Procure to Pay

– Return from Customer

– Stock Transfers

The inventory side reflects “inventory changes in externally managed location”, scrapping, consumption/return for cost center or projects, changes of stock attributes, and inventory alignment postings with the externally managed location

Related Content:

The document ‘How-to Guide (For SAP Business ByDesign May 2013)’ pretty much covers everything about 3PL scenario

1)System Setup

  • Business Configuration
  • Master Data
  • Warehouse Provider
  • Company Settings
  • Externally Managed Warehouse
  • Communication Arrangement
  • Document Numbering
  • 3PL Process Settings
  • Data Migration Business ByDesign – External Warehouse System

2)Business Processes: (Scenario running with master data)

  • Outbound Process: Standard Deliveries – Manual Posting and B2B Message
  • Outbound Process: Return to Supplier
  • Outbound Process: Stock Transfer
  • Inbound Process: Standard Deliveries
  • Inbound Process: Standard Deliveries – Manual Posting
  • Inbound Process: Standard Deliveries – B2B Message
  • Inbound Process: Customer Return
  • Inbound Process: Stock Transfer
  • Inventory Notifications
  • Inventory change in Externally Managed Location
  • Inventory Alignment with Externally Managed Location

There are 6 Different B2B message or 6 Webservice we use in 3PL scenario covered in mentioned link.

Inbound Delivery Execution In

Inbound Delivery Execution Out

Inbound Delivery Replication Out

Inventory Notification In

Outbound Delivery Execution In

Outbound Delivery Execution Out

The following information are covered in each B2B message

  • General Rules for using this Web Service
  • Pre-requisites for using this Web Service
  • Message Header
  • Message Body – Mandatory Elements
  • Root Node – InboundDeliveryExecution
  • Node – Item
  • Node – Material
  • Communication of master data identifiers
  • Scenarios

Related Blogs :

Third Party Logistics in BYD – Top 10 Best Practices–top-10-best-practices

Third party Logistics overview – part 1–an-overview-part-1-of-2

Third party Logistics ovewview part 2–an-overview-part-2-of-2

B2B integration of ByDesign with external systems

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  • Hi expert,

    I followed the document to setup 3PL, but I released the customer demand , It does not create in Third-party/ delivery proposal. It show on Outbound Logistic - delivery proposal.

    Can you tell me what happened ??

    how can I fix it ?



    • /
    • Hi Cuong,

      please also check in the sales order / customer demand list, if the corresponding sales order is really sourced from the 3PL-site. If not either adjust your sourcing master data (Tzones and Tlandes) or manually change the ship-from location to the 3PL-site in the sales order line item details.

      Best regards,


  • Hello Experts ,


    I have a query for 3PL processing. I want to modify the 3PL warehouse location at the sales return step . Is this possible ?


    Example :

    Sales Order sent from WH Location A.

    I have discontinued Location A and made only location B as active.

    Can we solution this requirement ?



    Ashish Sharma

  • Hi Experts ,

    I have a question in 3PL scenario , Is this possible to create multiple outbound delivery targeting a single 3PL request to process the Outbound.

    Lets say I have 3PL request for 10 Each , but stock is only for 5 ea. So , I want to ship 5 ea now and want to reprocess the same 3PL request for rest of the 5 ea and complete the delivery. I don't have any issue even in 2 OD documents.

    Any help would be appreciated 🙂